Apple Agrees to $250 Million Settlement Over AI Claims

Apple Inc. agreed on May 5, 2026, to a $250 million settlement to resolve consolidated class-action lawsuits alleging the company misled consumers regarding the artificial intelligence capabilities of Siri. The lawsuits, filed in the Northern District of California, contended that Apple used a "bait and switch" marketing strategy by promoting "Apple Intelligence" features—including personal context awareness and cross-app actions—that were non-existent or materially misrepresented at the time of the iPhone 16 launch.

Approximately 37 million devices are eligible for the settlement, specifically the iPhone 16 lineup and the iPhone 15 Pro and Pro Max models purchased in the United States between June 10, 2024, and March 29, 2025. Eligible owners may receive between $25 and $95 per device. The settlement follows an investigation by the Better Business Bureau's National Advertising Division, which concluded Apple falsely suggested the AI-powered Siri was "available now."

Apple denied any wrongdoing, stating it resolved the matter to remain focused on delivering innovative products. The company indicated it will roll out the promised AI features at its upcoming developer conference. The settlement awaits final approval from Judge Noel Wise of the U.S. District Court for the Northern District of California at a hearing scheduled for June 17, 2026. A claims-submission website is expected to launch in the coming weeks.