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Finance

Apple AI Settlement to Pay $250 Million to iPhone Users

iPhone owners could be eligible for up to $95 per device after Apple agreed Tuesday to settle a class-action lawsuit that claims Apple Intelligence features were falsely advertised.

The proposed $250 million settlement, if approved by the judge, would provide for a “presumptive” fee of $25 per device. The actual price “may go down or up to $95 per device depending on application volume and other factors,” according to the 38-page document.

The deal comes a few weeks before WWDC26, Apple’s Worldwide Developers Conference, which starts on June 8. The company is expected to announce a new Siri, with intelligence capabilities at the event. (Yes, eventually.)

The settlement stems from a March 2025 lawsuit that accused Apple of leading consumers to expect AI features in the iPhone 16 lineup that weren’t delivered.

“As a result, Apple overcharged consumers for Products they would not have purchased, or at least not at their higher prices, if the advertising had been honest,” the lawsuit said.

The case quickly escalated. In July, dozens of named plaintiffs filed a 200-page consolidated class action lawsuit.

Apple continues to deny all allegations.

“We resolved this issue so we can stay focused on doing what we do best, bringing the most innovative products and services to our users,” said Marni Goldberg, an Apple spokeswoman, in a statement released by multiple media outlets.

On Tuesday, the parties requested preliminary approval from a California judge ahead of a trial next month.

Why Apple’s AI rollout is important to your wallet

Apple’s gradual rollout of AI-powered Siri has been one of the biggest tech stories of the past two years.

Lawsuits against Apple say the technology company over-trusted and misrepresented itself after it began advertising AI features in Siri from the summer of 2024.

“For months, the multibillion-dollar tech giant has touted these AI capabilities as the basis of the new iPhone’s appeal, promising consumers a product that will redefine smartphone use in the new AI economy,” the original complaint reads. “[The features] it didn’t exist then and it doesn’t exist now.”

Goldberg, an Apple spokesman, said in a statement this week that the company has delivered promised features including “Visual Intelligence, Live Translation, Writing Tools, Genmoji, Clean and more.” He said “Apple has reached an agreement to resolve claims related to the availability of two other features.”

Which iPhones are included in the solution?

The settlement includes the entire iPhone 16 lineup and several iPhone 15 models. It only covers devices purchased between June 10, 2024 and March 29, 2025, according to the proposed payment. In total, about 37 million devices are eligible, according to the footnote.

Here is the complete list of eligible devices:

  • iPhone 16
  • iPhone 16e
  • iPhone 16 Plus
  • iPhone 16 Pro
  • iPhone 16 Pro Max
  • iPhone 15 Pro
  • iPhone 15 Pro Max

How to install Apple Siri application

Wait a bit. According to the plaintiffs’ lawyers, a link to the settlement’s website will be available “in a few weeks.”

Payments will be made through a variety of methods including Venmo, PayPal or check, depending on the proposed payment request.

A hearing is scheduled for June 17. The settlement still needs both initial and final approval, and payments won’t be released until all of that happens — and any potential complaints are resolved. The whole process usually takes months or years.

A final note: Don’t confuse this settlement with Apple’s separate $95 million Siri lawsuit, which was settled in January. While both lawsuits cited features of Siri, the earlier case concerned allegations that the voice assistant was “listening” when users didn’t intentionally use it. It had nothing to do with Apple Intelligence.

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