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Hoping to Collect on Apple’s $250M AI iPhone Settlement? You’ll Have to Wait a Year

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Why This Matters

This lawsuit highlights the risks of overpromising AI capabilities during product launches, emphasizing the importance of transparency for consumer trust. For the tech industry, it underscores the need for clear communication about feature availability to avoid legal and reputational damage. Consumers who purchased the iPhone 15 and 16 expecting AI features may now be eligible for compensation, though they will have to wait over a year for payouts.

Key Takeaways

Apple is settling a lawsuit related to the delayed rollout of Apple Intelligence features. Apple/Zooey Liao/CNET

If you purchased an iPhone 16 or iPhone 15 at launch in order to jump into promised Apple Intelligence features, you were probably disappointed: The signature AI abilities were nowhere to be found, and only a few related features appeared later.

The good news is that you may be entitled to receive a portion of a quarter of a billion dollar lawsuit. The bad news is that you’ll have to wait more than a year to see any of it.

Apple settled a false advertising lawsuit in May, agreeing to pay $250 million to customers who bought the iPhone 16 and some iPhone 15 models during a specified period. The lawsuit alleged that Apple misled customers by promising AI features that didn’t ship when the new devices did. Payouts between $25 and $95 per eligible device are expected.

Apple lit up its flagship New York City store to resemble Siri’s new color scheme. Bridget Carey/CNET

In an earlier statement to CNET Managing Editor David Lumb, an Apple spokesperson said, “Apple has reached a settlement to resolve claims related to the availability of two additional features. We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users.”

Now the case has moved forward as of July 17. According to an email from Clarkson Law Firm, “The Court has granted preliminary approval of the settlement … This means the Court has reviewed the proposed terms and found them sufficient to move forward to the next phase; it is not a final ruling on the settlement’s fairness.”

Why is there a lawsuit over Apple Intelligence?

When Apple advertised its new iPhone 16 lineup in 2024, it emphasized how the models were optimized for AI features such as an enhanced Siri that could act as an intelligent agent. When the phones did arrive, Apple Intelligence wasn’t yet ready; its first features didn’t arrive until iOS 18.1, five weeks later.

According to the proposed settlement, “Apple allegedly saturated the market with deceptive ads, inducing consumers to purchase iPhones based on the promise of certain enhanced Siri features.”

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