Apple to Shell Out Up to $95 to US iPhone Buyers Over AI Hype Lawsuit

Apple has agreed to pay up to $95 to some iPhone buyers in the United States after a lawsuit accused the company of misleading customers about new artificial intelligence features. The settlement applies to people who bought an iPhone 15 or iPhone 16 between June 2024 and March 2025. In total, Apple will pay $250 million to resolve the claims, though the company did not admit to any wrongdoing. The lawsuit was filed in California federal court and was part of a larger class action case that brought together many complaints from iPhone buyers.

The main issue in the lawsuit was that Apple advertised new AI features, called Apple Intelligence, as being available on the latest iPhones. These features were supposed to include an improved Siri voice assistant that could do much more than before. However, the lawyers for the iPhone buyers argued that these features did not actually exist when the phones were sold. They said Apple promoted these AI capabilities as a major breakthrough, but in reality, they were not available and might not be for several years. The lawsuit claimed that Apple was trying to keep up with other tech companies like OpenAI and Anthropic, which are known for their advancements in artificial intelligence.

Apple responded by saying that the lawsuit focused on just two features out of many that were part of the Apple Intelligence rollout. A spokeswoman said that Apple wanted to resolve the matter so the company could continue to focus on making innovative products and services for its users. Over the years, some critics have said that Apple has not been as innovative as other tech companies. The lawsuit argued that Apple’s marketing made it seem like the new iPhones would have a much smarter Siri, but customers did not get those features. Because of the settlement, people who bought an iPhone 15 or iPhone 16 during the specified time can now receive a payment from Apple.