Apple has agreed to a $250 million settlement to resolve a class action lawsuit that accused the company of misleading customers about artificial intelligence features on the iPhone 16 and iPhone 15 Pro lineup. The proposed settlement, reached on May 5, 2026, covers an estimated 36 million iPhones sold in the United States and could see eligible buyers receive payments ranging from $25 to $95 per device.
What The Lawsuit Was About
The case, filed in federal court in the Northern District of California, centred on Apple's marketing of ‘Apple Intelligence’ the AI platform unveiled at WWDC 2024. Plaintiffs alleged that Apple showcased a significantly smarter version of Siri at the event, then ran a wave of advertisements when the iPhone 16 launched in September 2024, building consumer expectations that these AI capabilities would be available on the device from day one. Those ads, including a high-profile campaign, ran for several months before Apple quietly delayed the upgraded Siri features in March 2025 and pulled the advertising. Apple has not admitted any wrongdoing but chose to settle rather than continue litigating.
Who Is Eligible
Anyone who purchased an iPhone 16, iPhone 16 Plus, iPhone 16 Pro, iPhone 16 Pro Max, iPhone 15 Pro, or iPhone 15 Pro Max in the United States between June 10, 2024, and March 29, 2025, may qualify for a payout under the settlement.
How Much Can You Get, And How To Claim It
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Eligible customers can expect a minimum payment of $25 per qualifying device, with the amount rising to as much as $95 depending on how many valid claims are ultimately filed, the more people who claim, the more the payout per person could shift within that range. Apple is expected to share a list of eligible customers with a settlement administrator, after which the firm Verita will send email and postal notices directing recipients to an official claims website. Once a notice is received, claimants will have 90 days to file. The settlement website, SmartphoneAISettlement.com, is set to serve as the official portal once the process formally opens. Based on the current court timeline, the first payments, whether as checks or direct deposits, aren't expected to go out until after September 2026, and that date could shift depending on court approval and any appeals.
What This Means Going Forward
While $250 million is a relatively small sum for a company of Apple's scale, the settlement adds to a growing list of legal and regulatory headaches tied to its AI rollout, which has lagged behind rivals like Google and OpenAI in delivering on-device assistant upgrades. For consumers, the message is simple: if you bought a qualifying iPhone in that window, keep an eye on your email and mailbox over the coming months and don't pay anything upfront, since legitimate settlement claims are always free to file.

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