Apple Agrees To $250 Million Settlement Over Misleading AI Siri Claims

In a major legal setback for Apple, the company has agreed to pay $250 million to settle a class action lawsuit alleging that it misled consumers about the artificial intelligence capabilities of its Siri voice assistant. The case focused on the company’s promotion of “AI-powered Siri” features during the launch cycle of the iPhone 16 series and select iPhone 15 Pro models.

The lawsuit claimed that Apple advertised advanced AI features that were either unavailable at launch or unlikely to arrive for years. According to court filings, plaintiffs argued that the company heavily marketed capabilities that “did not exist at the time, do not exist now, and will not exist for two or more years.”

The settlement was filed before a federal court in California and still requires judicial approval. A hearing in the matter is scheduled for June 17, 2026, before Judge Noel Wise of the Northern District of California.

The case covers around 36 million eligible devices sold in the United States between June 10, 2024, and March 29, 2025. Eligible products include the iPhone 16 lineup, along with the iPhone 15 Pro and iPhone 15 Pro Max.

Under the proposed settlement, affected consumers may receive compensation of $25 per device. The amount could rise to nearly $95 depending on how many claims are ultimately approved.

The complaint also referred to findings by the Better Business Bureau’s National Advertising Division, which reportedly concluded that Apple’s advertising created the impression that the upgraded AI Siri features were already available to users.

The legal dispute gained attention because Apple had positioned enhanced Siri functions as one of the biggest selling points for its latest iPhones. A Morgan Stanley survey cited in the complaint reportedly showed that the improved Siri experience was among the most anticipated features for potential buyers.

Apple had launched a large-scale promotional campaign highlighting the AI-powered assistant before later acknowledging delays in rolling out the features. The company subsequently withdrew related advertisements.

Despite agreeing to the settlement, Apple denied wrongdoing. In a statement quoted by international media reports, the company said it chose to resolve the matter in order to remain focused on delivering innovative products and services to users.