Apple to Pay $250 Million to Settle Misleading Advertising Lawsuit Over Its AI Features

Apple agrees to pay 250 million dollars to settle a class action lawsuit in the United States over allegedly misleading advertising related to Apple Intelligence and AI features on iPhone 15 and iPhone 16 devices.
The technology company reached a major legal settlement tied to marketing claims surrounding Apple Intelligence and AI-powered Siri capabilities.

Apple has agreed to pay 250 million dollars to settle a class action lawsuit in the United States accusing the company of misleading advertising related to artificial intelligence features promoted for the iPhone 15 and iPhone 16 lineup.

The lawsuit was filed in federal court in San Francisco and alleged that the company created a misleading impression regarding the immediate availability and actual performance of Apple Intelligence, Apple’s artificial intelligence platform.

According to the plaintiffs, Apple’s marketing campaigns encouraged millions of consumers to purchase new devices under the expectation that they would gain access to an advanced AI-powered version of Siri, features that ultimately did not arrive within the promised timeframe.

Users Could Receive Financial Compensation


The settlement still requires preliminary approval from a federal judge, but it includes compensation for customers in the United States who purchased iPhone 16 models or Pro versions of the iPhone 15 between June 10, 2024, and March 29, 2025.

Court documents indicate that eligible customers could receive between 25 and 95 dollars per device, depending on the total number of claims submitted during the settlement process.

Industry reports estimate that the agreement covers approximately 37 million devices sold across the United States, making it one of the most significant out-of-court settlements in Apple’s recent history.

Apple Denies Wrongdoing

Despite the size of the settlement, Apple has not admitted any legal wrongdoing or deceptive practices. The company maintains that since launching Apple Intelligence, it has introduced multiple AI-powered tools and improvements.

Among the features highlighted by Apple are real-time translation tools known as Live Translations, along with new visual intelligence capabilities and expanded AI integrations within the iOS ecosystem.

Apple also argues that it continues developing new AI-driven experiences intended to strengthen Siri’s capabilities and compete more aggressively in the rapidly expanding generative AI market.

Apple Faces Growing Pressure in the AI Race


Over the past several years, Apple has faced criticism for moving more slowly than competitors in the development of generative artificial intelligence technologies.

Companies such as Google and Samsung have expanded their lead with devices that integrate advanced AI features, smarter virtual assistants, and productivity-focused automation tools.

Apple officially introduced Apple Intelligence during its 2024 Worldwide Developers Conference (WWDC), unveiling a new generation of features designed to transform Siri and compete with platforms like ChatGPT.

However, several of the most ambitious tools announced during the event experienced major delays, raising concerns among consumers, investors, and technology analysts.

Upcoming WWDC Event Will Be Closely Watched

The legal settlement becomes public only weeks before Apple’s next annual developer conference, scheduled for June 8.

Analysts expect the company to unveil a more advanced Siri upgrade and additional AI-powered capabilities aimed at competing directly with the industry’s leading artificial intelligence platforms.

Pressure on Apple continues to grow as global adoption of generative AI tools accelerates, making the future of Apple Intelligence one of the company’s most important strategic priorities.