FOX Business Correspondent Susan Li reports on Apple's second quarter earnings as CEO Tim Cook highlights the company's significant investment in artificial intelligence on 'Morning with Maria.'
Apple has agreed to a $250 million settlement to settle allegations it misled consumers about artificial intelligence features tied into its latest iPhones, according to a federal court filing.
The proposed settlement, filed in the US District Court for the Northern District of California, would create a fixed settlement fund to compensate customers who purchased certain iPhone models sold with enhanced Siri capabilities that were not available at launch.
If approved, eligible users can receive a minimum of $25 per device, with payments that can increase up to $95 depending on the number of claims submitted.
The deal covers approximately 37 million devices sold in the US between June 10, 2024, and March 29, 2025, including all iPhone 16 and iPhone 15 Pro and Pro Max models.
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The settlement covers approximately 37 million devices sold in the US between June 10, 2024, and March 29, 2025. (Matt Cardy/Getty Images)
The lawsuit alleges that Apple promoted a series of “Apple Intelligence” features — including major improvements to its Siri assistant — that weren't available when the devices went on sale. The plaintiffs say the company “demonstrated” Siri's advanced capabilities in marketing campaigns even though the features “were not yet there.”
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“Apple allegedly flooded the market with deceptive advertising, luring consumers to purchase iPhones based on the promise of certain Siri Enhanced features,” the document said. “It also alleged that public reaction was swift and intense when consumers learned that Enhanced Siri features would be released later than expected.”
The lawsuit alleges that Apple promoted a set of “Apple Intelligence” features that weren't available when the devices went on sale. (apple)
Consumers objected to being charged for the delayed capabilities, saying they would not have bought the devices – or would have paid less – if they had known the features would not be available at launch.
Court filings show the plaintiffs estimated potential damages of more than $2 billion based on the alleged price payment associated with the promised features, although the settlement represents only a fraction of that amount.
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| AAPL | Company APPLE INC. | 287.46 | +3,28 |
+1.16% |
Apple has denied wrongdoing but agreed to settle to avoid the uncertainty and expense of protracted litigation.
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In a statement to FOX Business, Apple said it has rolled out a “bunch” of AI features across its platforms.
“Since the launch of Apple Intelligence, we have introduced a number of features in many languages integrated across all Apple platforms, which are compatible with what users do every day, and built with privacy protection at every step. These include Visual Intelligence, Live Translation, Writing Tools, Genmoji, Clean and much more,” said Apple.
Apple has denied wrongdoing. (Drew Anger/Getty Images)
The case underscores the growing legal risks for tech companies racing to roll out artificial intelligence tools, as firms compete to attract customers with advanced features. Apple has faced pressure from rivals, including Google and Samsung, which have moved aggressively to integrate AI into their devices.
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In order to receive compensation, users will have to submit claims proving that they purchased the relevant device and expected to receive advanced Siri features that were not delivered at the time. The proposed ruling still needs court approval, with a preliminary hearing scheduled for June.
