Apple has agreed to a $250 million settlement in a lawsuit that claimed the tech company misled iPhone buyers about new AI features (via BBC). A California man, Peter Landsheft, brought the lawsuit against Apple in March 2025. Over the months, several people joined the lawsuit. Both sides reached a mutual agreement to settle the case according to a May 5 filing.
Apple will reportedly pay $250 million to settle AI features lawsuit
In a settlement filed in California federal court, Apple denied the allegations but agreed to pay $250 million in settlement to iPhone buyers in the US. The lawsuit accused the company of touting new AI technology, including enhancements in the Siri voice assistant, in the iPhones they were advertising at the time. However, the device was missing these new features.
A spokesperson for the company stated that the lawsuit focused on “the availability of two additional features” among many others. These features were part of the Apple Intelligence rollout. She said, “We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users.”
In last week’s revised complaint, lawyers said that Apple’s marketing of the new AI features was false advertising. The lawyers wrote, “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, all while marketing them as the breakthrough innovation.” Apple consumers have often expressed disappointment about the lack of more innovation in its products.
The company’s marketing around Apple Intelligence claimed that it had a better version of Siri, but that was allegedly not the case. “The iPhone 16 was delivered to consumers without ‘Apple Intelligence,’ and Enhanced Siri never came,” the lawyers wrote. If a judge approves the settlement filing, Apple will pay between $25 and $95 to the people in the US who purchased an iPhone 15 or iPhone 16 between June 2024 and March 2025.
Originally reported by Ankita Shaw on Mandatory.
