Apple Inc. has agreed to a $250 million settlement to resolve a U.S. class-action lawsuit that accused the company of misleading consumers about the availability of enhanced Siri artificial-intelligence features. The proposed settlement, filed Tuesday in federal court in San Jose, California, requires judicial approval and does not include any admission of wrongdoing by the Cupertino-based tech giant.
The class action, brought on behalf of U.S. purchasers, covers a range of eligible devices purchased between June 10, 2024, and March 29, 2025. These include the iPhone 16, iPhone 16e, iPhone 16 Plus, iPhone 16 Pro, iPhone 16 Pro Max, iPhone 15 Pro, and iPhone 15 Pro Max. Under the terms of the settlement, eligible claimants are expected to receive a presumptive $25 per device, with potential payments rising to as much as $95 depending on the volume of claims and other factors. The fund is structured as non-reversionary, meaning any unused money will not be returned to Apple.
The dispute centers on Apple's marketing campaign for its Apple Intelligence suite, which prominently featured a more personalized and capable Siri. At the company's Worldwide Developers Conference in 2024, Apple positioned Apple Intelligence as a system combining generative models with personal context, and later promoted Siri features that could access information across different apps and perform actions on behalf of users. However, the rollout of these features was delayed, leading plaintiffs to argue that Apple's advertising created false expectations among consumers.
The settlement comes at a critical juncture for Apple as it works to restore confidence in its artificial intelligence strategy. Competitors such as Alphabet Inc. and Microsoft Corp. have moved more aggressively with generative AI capabilities, putting pressure on Apple to deliver on its promises. According to a Reuters report, Apple is planning to allow users to choose third-party AI models for some features in upcoming operating systems iOS 27, iPadOS 27, and macOS 27, signaling a shift in its approach to catch up with rivals.
The case also highlights the significance of the Siri upgrade to Apple's iPhone upgrade cycle. A Morgan Stanley survey cited in the complaint indicated that the improved Siri was the most anticipated feature among potential iPhone buyers, underscoring the stakes involved. The Better Business Bureau's National Advertising Division had previously concluded that Apple's advertising falsely suggested the new AI-powered Siri was immediately available, prompting Apple to pull related ads.
Plaintiffs' attorneys hailed the settlement as a landmark in false advertising cases related to AI. Brian Danitz, a partner at Cotchett, Pitre & McCarthy and interim co-lead counsel, called it “one of the largest in a false advertising case.” Ryan Clarkson, founder and managing partner of Clarkson Law Firm, said the case marks “an inflection point with AI” for both companies and regulators.
Apple spokesperson Marni Goldberg said the company “resolved this matter to stay focused” on its products and services. Apple also noted that it has introduced dozens of Apple Intelligence features, including Visual Intelligence, Live Translation, Writing Tools, Genmoji, and Clean Up.
The payout is not yet final. U.S. District Judge Noël Wise is scheduled to consider preliminary approval of the settlement on June 17 at 9 a.m. in San Jose. The actual payment per device will depend on the number of valid claims, court-approved fees, notice costs, and any objections. For Apple, the settlement removes one legal hurdle but leaves the broader challenge of delivering the Siri upgrade that was used to sell its AI vision. Reuters reported that Apple executives have indicated new Siri features will be unveiled at the company's next developer conference.
