Apple has agreed to pay $250 million to settle a class-action lawsuit alleging false advertising around its Apple Intelligence features. The lawsuit, filed by iPhone buyers, claimed that Apple promoted advanced AI capabilities — including a significantly enhanced version of Siri — that were not available at launch and may not arrive for years, if ever. The settlement covers U.S. customers who purchased an iPhone 15 or iPhone 16 between June 2024 and March 2025, with individual payouts ranging from $25 to $95.

Apple did not admit wrongdoing as part of the agreement, stating that the lawsuit focused on the delayed availability of just two features within a broader AI rollout. A company spokesperson said the settlement allows Apple to remain focused on innovation. However, the legal complaint argued that Apple’s marketing misrepresented the current state of its AI technology to stay competitive in the fast-moving AI race led by companies like OpenAI and Anthropic.

The case highlights growing scrutiny over how tech companies market emerging technologies. While Apple Intelligence was promoted as a breakthrough, many of its promised features were not included in shipped devices, including the iPhone 16. Critics, including the plaintiffs’ lawyers, say the company used AI hype to boost sales despite knowing the capabilities were not yet ready. The settlement now awaits court approval.