Owners of certain iPhones could receive cash payments of up to $95 from Apple following the company’s $250 million settlement of a class-action lawsuit over false advertising of its artificial intelligence features.
Apple heavily promoted new AI capabilities for Siri when it launched the iPhone 16 in 2024 as part of software updates it marketed as “Apple Intelligence,” but failed to deliver.
Kelvin Chan for Associated Press:
The company has been scrambling to keep up with tech rivals amid the AI boom but still hasn’t delivered on the Siri revamp two years later.
The lawsuit, filed on behalf of U.S. consumers in the San Francisco federal court for the Northern District of California, alleged that Apple deceived consumers with a marketing campaign that promoted features that did not yet exist and misled them into buying the devices.
Lawyers for the iPhone buyers asked a court for preliminary approval of the proposed $250 million settlement, according to a court filling. If approved by a judge, it would be one of the biggest ever for Apple.
The settlement covers about 37 million devices bought in the United States between June 10, 2024 and March 29, 2025, including all iPhone 16 models and the iPhone 15 Pro and iPhone 15 Pro Max.
Owners are eligible for a payment of at least $25 for each device, and that amount could go up to $95 depending on how many other claims are filed “and other factors,” the filing said.
Apple, based in Cupertino, California, was caught off-guard by the intense consumer interest in the Siri AI features. Buyers were angered after finding out that the new features would be released later than expected, the filing said.
They “would not have purchased the Eligible Devices or would have paid significantly less, had they known Enhanced Siri features were not available,” the filling said.
MacDailyNews Take: Again, Apple got off easy. It ends up being effective advertising, albeit false. $250 million is pocket change.
As usual, we called it correctly very early on:
When you're caught flat-footed like Tim Cook's Apple, you pop into scramble mode to try to catch up. Early on, you hit it with a big marketing flourish (WWDC24) in order to buy some more time. Then you dribble out features as they get finished & actually exist. Classic vaporware. https://t.co/I1J4y3aDNy pic.twitter.com/fLKvxGj4G3
— MacDailyNews (@MacDailyNews) July 31, 2024
The Apple Intelligence vaporware [is] false advertising, fraud, and lies. Those will be the basis for class action lawsuits from iPhone, iPad, and Mac customers soon enough. And Apple will deserve them all. – MacDailyNews, March 14, 2025
See also: Apple pulls iPhone 16 ad touting nonexistent Apple Intelligence-powered Siri features – March 10, 2025
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$95, nope not even that close, $25 by the chance. The Lawyers make bank though.