The lawsuit claims Apple misled iPhone users about Apple Intelligence, the company’s AI tool, before and after the launch of the iPhone 16 in September 2024. The settlement filing said that US buyers who purchased certain iPhone 15 and iPhone 16 models between June 10, 2024, and March 29, 2025, may be eligible to receive a portion of the $250 million settlement.
Several class-action lawsuits were filed over Apple Intelligence marketing before being combined into a single action. Both parties in the case have now agreed to settle, according to a petition filed May 5 in the U.S. District Court for the Northern District of California.
Once the judge approves the settlement, eligible Apple customers will be able to receive payments between $25 and $95.
As is typical with class-action settlements, Apple has not admitted any wrongdoing. The company defended itself in a statement sent to new York Times: “We resolved this case to allow us to focus on doing our best work while providing the most innovative products and services to our users.”
Why was Apple sued in the first place?
When ChatGPT arrived on the tech scene in 2022, it ignited a global AI arms race. While companies like Google have been able to fend off competitors like ChatGPT, Tim Cook’s company has maintained a cautious position on the sidelines.
In 2024, Apple launched its AI tool under the banner of Apple Intelligence. Early marketing of Apple Intelligence highlighted a variety of use cases, such as composing emails and a more conversational, intelligent Siri.
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The lawsuit says Apple promised iPhone buyers “enhanced Siri features” and advanced AI capabilities, and its failure to deliver violated consumer protection laws.
Apple’s stalled work on an AI version of Siri has been one of the biggest ongoing stories in the tech industry in recent years. The company is expected to finally release an updated Siri at the WWDC 2026 event in June, two years behind schedule.
In short, the lawsuit claims that Apple oversold customers on AI features that had not even been created, and which are still untested today.
“We are proud to achieve a landmark settlement on behalf of consumers who should feel confident and protected when deciding where to spend their hard-earned money,” said Ryan Clarkson, founder and managing partner of Clarkson Law Firm, one of the firms involved in the class-action case. “We are at a critical juncture with AI, and the choices companies and regulators make now will determine how this technology impacts everyday people.”
Clarkson told Mashable that “the balance of power between ordinary consumers and wealthy and powerful corporations” may depend on such lawsuits, at least “until the political impasse in Washington goes away.” He called out companies like Apple for “mandatory arbitration provisions buried in the pages of so-called terms of service that avoid accountability, close court doors, and force individuals to pursue low-dollar claims in secret tribunals outside the public eye.”
Which iPhone models are included in the class-action settlement?
The agreement states that buyers who reside in the US and purchased iPhones with Apple Intelligence features between June 2024 and March 2025 may be eligible for compensation. The phones named in the agreement include:
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iPhone 16
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iPhone 16E
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iPhone 16 Plus
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iPhone 16 Pro
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iPhone 16 Pro Max
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iPhone 15 Pro
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iPhone 15 Pro Max
Typically, this type of class-action settlement requires approval from a judge. Notices will be automatically sent to many customers, and a settlement website will be created with additional information on consumers’ rights in the case.
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