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Apple Shells Out $250 Million to Settle Deceptive AI Marketing Lawsuit

Tech giant forced to pay up after customers accused the company of peddling vaporware features in its latest iPhone lineup.

TechPublished May 6, 2026 at 12:15 AM
Apple CEO Tim Cook on a dark stage with a neon Apple logo behind him. He is wearing a blue polo sweater, black jeans and white sneakers and gesturing his hands, while three other people on stage look at him.

Apple is cutting a $250 million check to settle a massive class-action lawsuit that accused the tech titan of bait-and-switch tactics regarding its artificial intelligence capabilities. The settlement, filed in a California federal court, covers U.S. customers who purchased iPhone 15 or iPhone 16 models between June 2024 and March 2025.

While the company stopped short of admitting wrongdoing, the payout serves as a significant rebuke to its aggressive marketing campaign. Plaintiffs argued that Apple promoted 'Apple Intelligence' and a supposedly revolutionary, AI-enhanced Siri that simply did not exist at the time of purchase and remains largely absent.

Lawyers for the buyers didn't mince words, describing the company's marketing as 'false advertising' for promising breakthrough innovation that was never delivered. Despite the hefty settlement, an Apple spokeswoman brushed off the controversy as a focus on only 'two additional features,' claiming the company wants to stay focused on its product pipeline.

For the millions of consumers who bought into the hype, however, the settlement is a clear indication that Apple’s promises about its AI-powered future were far ahead of the actual technology.

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