Apple Settles Class-Action Lawsuit, iPhone Owners to Receive Payments
In a significant development, Apple is poised to offer cash reimbursements of up to $95 to holders of certain iPhone models, following a $250 million settlement related to allegations of deceptive advertising concerning its artificial intelligence functionalities.
Launched in 2024 alongside the iPhone 16, Apple’s ambitious claims regarding new AI enhancements for Siri—marketed under the banner of “Apple Intelligence”—have come under scrutiny, as the technology remained largely unfulfilled.
According to Kelvin Chan for the Associated Press:
The tech giant has struggled to maintain its competitive edge amid soaring consumer expectations surrounding artificial intelligence. Yet, two years post-launch, the anticipated revamp of Siri remains elusive.
The lawsuit, initiated on behalf of American consumers in the Northern District of California, claims Apple misled customers through a marketing campaign that promoted features that were not functional at the time, effectively incentivizing purchases under false pretenses.
Legal representatives for the iPhone purchasers are seeking preliminary court approval for the substantial settlement, which, if sanctioned, would stand as one of the largest financial settlements in Apple’s history.
This settlement is set to encompass roughly 37 million devices sold in the U.S. from June 10, 2024, to March 29, 2025. Included within this are all models of the iPhone 16, alongside the iPhone 15 Pro and iPhone 15 Pro Max.
Eligible owners are expected to receive a minimum payment of $25 for each device, potentially escalating to $95, contingent on the volume of claims and other considerations, as detailed in court filings.
Headquartered in Cupertino, California, Apple was reportedly taken aback by the fervent consumer anticipation surrounding new Siri functionalities.
Frustration bubbled to the surface as buyers discovered these features would not materialize as swiftly as promised, according to legal documentation.
Consumers expressed that they “would not have purchased the Eligible Devices or would have paid significantly less, had they known Enhanced Siri features were not available,” the filing asserted.
MacDailyNews Take: Once again, it appears that Apple has evaded substantial repercussions. The settlement may be sizeable in absolute terms but is relatively negligible for a corporation of Apple’s stature.
As anticipated, the situation was presaged:
When you’re caught flat-footed like Tim Cook’s Apple, you pop into scramble mode to try to catch up.
Early on, you hit it with a big marketing flourish (WWDC24) in order to buy some more time. Then you dribble out features as they get finished & actually exist. Classic vaporware. https://t.co/I1J4y3aDNy pic.twitter.com/fLKvxGj4G3
— MacDailyNews (@MacDailyNews) July 31, 2024
Asserting that the purported Apple Intelligence vaporware constitutes false advertising, fraud, and disinformation, it is clear that iPhone, iPad, and Mac customers may soon pursue class action lawsuits against Apple, rightly earning such scrutiny. – MacDailyNews, March 14, 2025
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