iPhone owners may receive payments of up to $95 each after Apple agreed to a class-action lawsuit settlement concerning allegedly misleading advertising of its AI features. The proposed settlement, totaling $250 million, would offer a base payment of $25 per device, with the possibility of varying amounts based on claims received.
The lawsuit centers on allegations that Apple marketed AI capabilities in the iPhone 16 lineup, leading consumers to believe these features were included when they were not. The plaintiffs contended that these misleading claims influenced their purchasing decisions.
The legal resolution comes just ahead of the Worldwide Developers Conference, where Apple is expected to unveil a new AI-enhanced Siri. The case gained traction following a consolidated lawsuit filed in July 2025, which raised concerns about Apple’s artificial intelligence promises, particularly its marketing campaign initiated in the summer of 2024.
Apple has denied any wrongdoing, with spokesperson Marni Goldberg stating that the company aims to focus on delivering innovative products rather than prolonging litigation. A federal judge in California is set to review the settlement next month.
The settlement covers all iPhone 16 models and select iPhone 15 devices purchased between June 10, 2024, and March 29, 2025, amounting to approximately 37 million eligible devices. Payment options will potentially include Venmo, PayPal, or checks. A settlement hearing is scheduled for June 17, with the process expected to take several months before any payments are issued.
This lawsuit is distinct from a previous privacy-related settlement regarding Siri, which concluded earlier this year.
Why this story matters:
- Apple faces scrutiny over its marketing practices and the delivery of promised features.
Key takeaway:
- Consumers potentially eligible for compensation due to allegations of misleading advertising.
Opposing viewpoint:
- Apple maintains that it has delivered on its AI promises, asserting that the settlement aims to facilitate focus on innovation rather than protracted legal disputes.
