Apple Agrees to $250 Million Settlement Over Delayed AI Features

Apple agreed to a $250 million settlement on May 6, 2026, to resolve class action allegations that it misled customers about AI features on its iPhone 16.
The lawsuit claimed Apple had advertised advanced “Apple Intelligence” and an enhanced Siri that were not functional at the time of launch in late 2024.
Approximately 36 million customers who bought certain iPhone models between June 10, 2024, and March 29, 2025, are eligible for compensation.
Individual payouts are expected to start at $25 per device and could potentially go up to $95 based on the number of claims.
The lawsuit was initially filed by California resident Peter Landsheft in March 2025, accusing Apple of deceptive marketing practices.
Apple denied any wrongdoing but acknowledged that some features were delayed and promised future software updates.
The settlement provides Apple with an exit from litigation and allows it to continue rolling out its AI software globally.
Final approval from a judge is required, with a hearing scheduled for June 17, 2026, after which Apple must notify eligible customers.

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