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Apple settles a class-action lawsuit over misleading AI advertising for $250 million, with each eligible user receiving $25 to $95 in compensation.
BlockBeats News, May 6 — Apple reached a settlement of $250 million in a class-action lawsuit. Previously, consumers accused the company of overhyping artificial intelligence features that were not delivered on the company’s new iPhone models. Each eligible device owner will receive compensation ranging from $25 to $95, depending on the final number of qualified claims.
The lawsuit centers on Apple Intelligence released by Apple in June 2024—its response plan for products such as OpenAI’s ChatGPT. Lawyers representing iPhone buyers said in the class action that the AI features Apple promoted at the time “did not exist then, do not exist now, and will not exist in the next two years or even longer, and might not exist forever.”
When Apple released the new iPhone in September 2024, the Intelligence features it promised were not delivered. These lawyers said, “When iPhone 16 was delivered to consumers, there was no Apple Intelligence, and the enhanced Siri never arrived.” The problem persisted after the release. Apple delayed the release of the upgraded Siri in March 2025 due to quality issues. Another feature in Intelligence—notification summaries—had previously shown news reports incorrectly, leading Apple to completely disable that feature.