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Apple to Pay $250M Over Misleading iPhone AI Claims

Millions of iPhone users who purchased eligible devices after Apple heavily promoted delayed artificial intelligence features are facing a lengthy wait for financial compensation. According to reports from Newsweek, a federal court has granted preliminary approval to a…

Apple to Pay $250M Over Misleading iPhone AI Claims

Millions of iPhone users who purchased eligible devices after Apple heavily promoted delayed artificial intelligence features are facing a lengthy wait for financial compensation. According to reports from Newsweek, a federal court has granted preliminary approval to a $250 million consumer class-action settlement, but the legal process means payouts will likely not arrive for at least another year.

Who Qualifies for the Apple AI Settlement

The class-action lawsuit covers an estimated 36 million to 37 million U.S. consumers. According to court filings cited by Newsweek, eligible class members include anyone who purchased an iPhone 16 model, an iPhone 15 Pro, or an iPhone 15 Pro Max between June 10, 2024, and March 29, 2025.

The litigation accuses Apple of misleading consumers by advertising advanced AI-powered Siri capabilities and the Apple Intelligence platform as core selling points before those features were actually ready for release. While some functions like Writing Tools, Genmoji, and Visual Intelligence eventually arrived, the heavily promoted advanced Siri capabilities were missing when consumers bought the hardware.

Timeline for Payouts and the Claims Process

Although the settlement received preliminary approval from a federal court, several procedural steps remain before checks or direct payments go out. According to legal reporting, class members must first receive formal notice, submit valid claims, and be given adequate time to object or opt out of the agreement. Courts must also resolve any potential appeals before funds are distributed.

Eligible consumers are expected to receive between $25 and $95 per device. The exact payout amount depends on the total number of valid claims filed and other final settlement adjustments, meaning the final figures remain unconfirmed until the claims window closes.

Industry Scrutiny Over AI Marketing Claims

Finance expert Michael Ryan told Newsweek that the core issue centers on the gap between marketing promises and product delivery. Apple shipped products on the promise of features that took nearly two years to fully materialize, according to Ryan. Alex Beene, another financial expert cited in the reporting, noted that as technology companies rush to sell hardware tied to artificial intelligence, they will likely face heightened legal and financial scrutiny if their marketing outpaces actual software capabilities.

Apple to Pay $250M Over Misleading iPhone AI Claims
Photo: newsweek.com

Apple agreed to settle the litigation in May without admitting any wrongdoing. A company spokesperson previously stated that the settlement allows Apple to stay focused on delivering innovative products and services to its user base.

Apple Agrees to $250M Settlement Over Misleading AI Features
About the author: Anika Shah - Technology

MSc in Computer Science, senior reporter. Anika focuses on AI ethics, cybersecurity, and emerging hardware—frequently moderating panels at CES and Web Summit. “Anika Shah decodes tech breakthroughs and startup disruption shaping tomorrow’s digital landscape.”