SAN FRANCISCO - Some iPhone users could soon see payouts after Apple agreed to pay $250 million to settle claims that it deceived consumers by advertising artificial intelligence features that were not yet available on its devices.

Apple agreed to settle the class-action lawsuit filed on behalf of U.S. consumers in San Francisco federal court on Tuesday, according to The Associated Press. The deal would rank as one of the largest ever settlements for the company, if approved by a judge.

The complaint stemmed from allegations that Apple promoted new AI features for its virtual assistant Siri when it announced the iPhone 16 in 2024. The features were marked as part of a host of “Apple Intelligence” software upgrades but were not operational when phones went on sale that fall.

Those improvements were delayed, and Apple executives confirmed to Reuters that the new Siri features are now set to be unveiled at the company’s annual developer conference next month.

“Apple has reached a settlement to resolve claims related to the availability of two additional features,” the company said in a statement to the outlet. “We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users.”

Millions of iPhone users who purchased certain models in the United States between June 10, 2024, and March 29, 2025, could be eligible for a chunk of the multimillion-dollar payout, according to court filings. There are approximately 37 million eligible devices, including all iPhone 16 models, the iPhone 15 Pro and the iPhone 15 Pro Max.

If the settlement is approved, qualifying owners will be notified via mail or email that they can file a claim through the settlement website, the filing said.

The document further noted that payments will start at a minimum of $25 per device, with the amount possible capped at $95. They will be issued through Venmo, PayPal or by check.

In January, Apple announced that it would use Google’s Gemini AI models to power its Apple Intelligence features. The company has been using OpenAI’s ChatGPT platform to handle certain capabilities since June 2024.

“After careful evaluation, Apple determined that Google’s Al technology provides the most capable foundation for Apple Foundation Models and is excited about the innovative new experiences it will unlock for Apple users,” Apple and Google said in a joint statement at the time. (Source: The Hill)

Story Date: May 7, 2026