Apple has reached a $250 million settlement to resolve a class-action lawsuit concerning how it promoted its artificial intelligence features prior to the iPhone 16 launch. The Financial Times initially reported the development.

The legal action accused Apple of overstating the scope of capabilities that Apple Intelligence would deliver, particularly a significantly enhanced version of its voice assistant, Siri. According to the complaint, the company gave the impression that advanced AI functions would be available to users much sooner than they actually were. Specifically, plaintiffs argued that Apple exaggerated both the readiness and functionality of these features, especially the promised improvements to Siri, which have yet to fully materialize.

As a result, the lawsuit claims that consumers who purchased the iPhone 15 or iPhone 16 believed they were paying for cutting-edge AI tools that were not actually available at the time of purchase. The complaint characterized this as false advertising, asserting that Apple's marketing influenced buying decisions based on features that were either incomplete or delayed. Apple did not admit wrongdoing in court but opted to settle the case rather than proceed with litigation.

Under the proposed agreement, eligible U.S. customers who bought an iPhone 15 or iPhone 16 between June 10, 2024, and March 29, 2025, could receive up to $95 per device. Apple has been promoting a more advanced version of Siri ever since it unveiled Apple Intelligence in 2024 during its Worldwide Developers Conference. The anticipated updates are expected to help Siri function more like modern AI chatbots such as ChatGPT or Claude.

The upgraded experience is rumored to be powered by Google Gemini, though newer reports suggest that the company's next iPhone operating system may allow users to select from a variety of third-party large language models. The settlement arrives ahead of Apple's annual developer conference on June 8, when the company is expected to preview a version of its AI-enhanced Siri.