Apple settles lawsuit over misleading AI claims for $250 million, U.S. users eligible for compensation

Odaily Planet Daily News Apple has agreed to pay $250 million to settle a class-action lawsuit alleging that it misled consumers about the AI capabilities of its iPhone devices. The lawsuit claimed that Apple exaggerated non-existent AI features when promoting Apple Intelligence in June 2024, and that the iPhone 16 shipped in September of that year did not include the promised AI capabilities. Although Apple denies any wrongdoing, it has agreed to provide compensation ranging from $25 to $95 per device to U.S. consumers who purchased related iPhone 15 and iPhone 16 models between June 10, 2024 and March 29, 2025. The settlement covers approximately 36 million phones sold in the United States. Apple has now announced that it will use Google's Gemini to power its AI products, including Siri.