Apple has agreed to pay $250 million to settle a U.S. class action lawsuit alleging that it misled consumers and shareholders about the rollout of artificial intelligence features tied to its Siri voice assistant.(Reuters)
The lawsuit stemmed from Apple’s 2024 promotion of its new “Apple Intelligence” platform, unveiled at the company’s annual developer conference. Apple marketed the software as introducing major AI upgrades, including a significantly enhanced Siri capable of functioning as a more advanced personal assistant. The company indicated that the features would arrive alongside its newest iPhone models later that year.
However, the iPhone 16 launched without the most anticipated Siri capabilities, prompting claims that Apple had overstated the readiness of the technology. Plaintiffs argued that the delayed rollout harmed consumers who purchased devices expecting the advertised features and also damaged shareholders by inflating expectations around Apple’s AI strategy.
Under the proposed settlement, eligible U.S. customers who bought certain iPhone 15 and iPhone 16 models between June 2024 and March 2025 may receive compensation estimated at between $25 and $95 per device, depending on the final number of approved claims. The agreement still requires court approval.
Apple denied wrongdoing as part of the settlement but said resolving the case would allow it to remain focused on product development. In a statement, the company said the litigation concerned only two delayed features and emphasized that it had already launched numerous other AI tools since introducing Apple Intelligence.
The dispute emerged as Apple faced growing pressure to demonstrate competitiveness in generative AI against rivals such as OpenAI, Anthropic, and other major technology companies. Critics have argued that Apple’s aggressive marketing of unreleased AI capabilities reflected an effort to reassure investors and consumers that the company remained competitive in the fast-moving AI race.
Plaintiffs claimed Apple falsely portrayed Siri’s transformation from a basic voice assistant into what it described as a “full-fledged personal AI assistant,” despite the technology not being ready for release. In court filings, lawyers alleged Apple promoted capabilities that either did not exist or remained years away from deployment.
Apple has since said the delayed Siri overhaul will launch later this year, with executives expected to provide further details at the company’s upcoming developer conference.
