Apple to Pay $250M to Settle Lawsuit Over Misleading Siri AI Claims

Key facts

• Apple agreed to pay $250 million to settle a class-action lawsuit over false advertising of Apple Intelligence features.
• The settlement covers roughly 36 million eligible devices sold in the US from June 10, 2024 to March 29, 2025.
• Each class member may receive between $25 and $95 per device, depending on the number of approved claimants.
• The lawsuit alleged Apple promoted AI capabilities that did not exist at the time and still have not been fully released.
• Apple admitted no wrongdoing in the settlement, which was filed Tuesday in California federal court.
• A court hearing for final approval is set for June 17 before Judge Noël Wise.
• The Better Business Bureau's National Advertising Division had also concluded Apple falsely suggested the new Siri was 'available now'.

A Landmark Settlement Over Phantom AI Features

Apple has agreed to pay $250 million to resolve a class-action lawsuit accusing the company of misleading millions of iPhone buyers by advertising artificial intelligence capabilities for its Siri voice assistant that never existed. The settlement, filed Tuesday in the federal district court for the northern district of California, covers roughly 36 million eligible devices — the iPhone 16, as well as the iPhone 15 Pro and 15 Pro Max — purchased in the US between June 10, 2024 and March 29, 2025. Each class member could receive $25 per device, with the sum potentially reaching $95 depending on the number of approved claimants. The agreement includes no admission of wrongdoing by Apple, which stated it resolved the matter to stay focused on delivering innovative products and services.

The False Promise of a Smarter Siri

The consolidated class-action lawsuit, filed last year, accused Apple of false advertising around its Apple Intelligence suite, particularly an enhanced version of Siri that was marketed as transforming the voice assistant from a limited interface into a full-fledged personal AI assistant. In a revised complaint filed last week, lawyers wrote that Apple promoted AI capabilities that did not exist at the time, do not exist now, and will not exist for two or more years, if ever. A Morgan Stanley survey cited in the complaint indicated that enhanced Siri was the feature potential iPhone buyers most anticipated. Apple launched a major advertising campaign in 2024 to promote these capabilities before confirming their indefinite delay and pulling its ads.

Legal and Regulatory Scrutiny

The Better Business Bureau's National Advertising Division, the US advertising watchdog, had also concluded that Apple falsely suggested the new AI-powered Siri was available now. The lawsuit was brought by Clarkson Law Firm on behalf of consumers. Ryan Clarkson, founder and managing partner of the firm, said the settlement was historic and that consumers should feel confident when deciding where to spend their money. Lawyers for the plaintiffs argued that Apple undertook the AI marketing campaign specifically to catch up in a Big Tech race driven by new companies like OpenAI and Anthropic. Outgoing chief executive Tim Cook has faced criticism over the years for not being innovative enough with Apple's products.

Timeline and Compensation Details

The settlement covers iPhone purchases made between June 10, 2024 and March 29, 2025. Affected models include the iPhone 16, iPhone 15 Pro, and iPhone 15 Pro Max. Each eligible device owner may receive $25, but that amount could rise to $95 if fewer claimants come forward. Apple did not admit any wrongdoing in the agreement. An Apple spokeswoman said the lawsuit focused on the availability of two additional features in a lineup of many released as part of the Apple Intelligence rollout. The company stated it resolved the matter to stay focused on what it does best: delivering innovative products and services.

Wider Context and Industry Implications

The case highlights the intense competition among tech giants to lead in artificial intelligence. Apple's marketing of Apple Intelligence as a breakthrough innovation was allegedly false, with the iPhone 16 delivered to consumers without Apple Intelligence and enhanced Siri never coming. The complaint stated that Apple promoted capabilities that did not exist at the time, do not exist now, and will not exist for two or more years. This settlement comes amid broader scrutiny of AI claims in the tech industry. Regulators and consumers are increasingly demanding accountability for products that fail to deliver on advertised features. The outcome may set a precedent for how companies market AI capabilities in the future.

What Comes Next

The settlement must still be approved by Judge Noël Wise of the federal district court for the northern district of California at a hearing set for June 17. If approved, the payout process will begin for eligible iPhone buyers. Apple has not indicated when or if the promised enhanced Siri features will be released. The company continues to develop its Apple Intelligence platform, but the timeline for a fully functional AI-powered Siri remains uncertain. For now, consumers who purchased an iPhone based on those promises may receive compensation, but the smarter Siri they were waiting for remains elusive.

The bottom line

• Apple will pay $250 million to settle claims of false advertising over Siri AI features that never materialized.
• The settlement covers 36 million iPhone 15 Pro, 15 Pro Max, and iPhone 16 devices sold in the US from June 2024 to March 2025.
• Each eligible buyer may receive between $25 and $95 per device, pending court approval on June 17.
• Apple admitted no wrongdoing but agreed to the payout to focus on product development.
• The lawsuit highlighted the gap between marketing hype and actual AI capabilities in the tech industry.
• Enhanced Siri, the most anticipated feature, remains indefinitely delayed with no release date announced.