Apple is shelling out $250 million to settle a class-action lawsuit that accused the tech behemoth of misleading consumers about its much-hyped artificial intelligence features. The settlement, filed in a California federal court, covers customers who purchased iPhone 15 or iPhone 16 models between June 2024 and March 2025.
While Apple stopped short of admitting any wrongdoing, the payout serves as a costly reminder of the company's aggressive marketing tactics. Plaintiffs alleged that Apple sold the iPhone 16 on the promise of 'Apple Intelligence' and a revolutionary, upgraded Siri, only to deliver devices that lacked the advertised capabilities.
Lawyers for the class action argued that Apple marketed features that were non-existent at the time of sale and remain unavailable today, characterizing the campaign as a deceptive attempt to drive sales with vaporware.
An Apple spokeswoman dismissed the controversy as a focus on only two features within a broader rollout, claiming the settlement allows the company to move forward. However, for the consumers who paid a premium for hardware based on promises that never materialized, the settlement is a necessary correction for corporate overreach.
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