GoKawiilThe legal machinery for class-action settlements grinds slowly, but a court order today in Apple’s $250 million case over its iPhone AI features potentially speeds things up by seven months.
Apple settled a false-advertising lawsuit in May, agreeing to pay $250 million to customers who bought some iPhone 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. If you purchased an iPhone 16 or iPhone 15 at launch, you may be entitled to receive a portion of the quarter-billion-dollar lawsuit. 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.”
On 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.”
The latest Aug. 13 order moves up the final approval date.
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.”
Some features of Apple Intelligence did ship soon after the introduction of the iPhone 16 and iOS 18, including Visual Intelligence, Live Translation, Writing Tools, Genmoji and Clean Up. But those weren’t the advanced features Apple highlighted. In fact, the type of intelligent interactions Apple advertised are only starting to show up in Siri AI, which is part of iOS 27 that’s expected to be released later this year. The public beta of iOS 27 is available now.
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