Apple recently agreed to pay $250 million to settle a U.S. class action lawsuit. The lawsuit accuses Apple of over-touting its Apple Intelligence capabilities, particularly promised Siri AI upgrades, but consumers believe the features never actually materialized. The settlement was announced ahead of Apple’s June developer conference, where it is expected to finally reveal some form of AI-enhanced Siri.
Cause of the incident: Over-hyping Apple Intelligence
The legal action centers on Apple’s pre-announced AI capabilities at the 2024 Worldwide Developers Conference (WWDC). At that time, there were still several months before the launch of iPhone 16. Apple vigorously promoted the new Apple Intelligence features at the meeting, including the “revolutionary upgrade” of Siri digital assistant.
The lawsuit points out that Apple is suspected of flooding the market with misleading advertising to lure consumers into buying iPhones precisely because they believe in the promise of “enhanced Siri functionality.” However, these features never actually came to fruition and, according to plaintiffs’ attorneys, may not be available for several more years.
Settlement details: Up to $95 per person
The settlement, filed in federal court in California, is one of the largest in Apple history. The settlement covers U.S. consumers (excluding consumers outside the U.S.) who purchased any model of iPhone 15 or iPhone 16 between June 10, 2024, and March 29, 2025.
According to the lawsuit, eligible consumers will receive an initial settlement of $25 per device per person, but the final amount may be adjusted based on claims, up to $95 per device, and court documents state that a $250 million mutual fund will be used to pay consumers with successful claims.
Timeline: Advertising controversy to removal
Apple’s advertising campaign also attracted the attention of the National Advertising Division of the Good Business Bureau. The agency found that the statement “Apple Intelligence is now available” conveyed the meaning that an updated version of Siri would be available at launch, but this was not actually the case. It wasn’t until March 2025 that Apple informed consumers that enhanced Siri functionality would be delayed until a future date. The next day, Apple removed a Siri ad starring Bella Ramsey that showed a version of Siri that could answer “What’s the name of the person I had a meeting with at Cafe Grenel a few months ago?”
Apple’s response and future plans
The settlement, which is pending approval by a judge, does not admit any wrongdoing by Apple. Apple spokesperson Marni Goldberg told “new york times“Issued a statement, emphasizing that with the launch of Apple Intelligence, Apple has “introduced dozens of features across multiple languages that have been integrated into Apple platforms” and said that the company “wants to resolve this matter so that we can focus on doing what we do best: providing users with the most innovative products and services.”
In a statement to Daring Fireball in March 2025, Apple spokesperson Jacqueline Roy admitted that the company had indeed “been developing a more personal Siri, giving it more awareness of your personal context and the ability to take actions for you within and across your apps,” but confirmed that it would take “longer than expected to deliver on these features,” and that it expected to gradually roll out “over the next year.”
Common legal issues
This is the second time in recent years that Apple’s voice assistant has cost the company dearly. Last May (2025), Apple agreed to pay $95 million to settle another class-action lawsuit that alleged that SiriMonitor and record private conversations. Moreover, the troublesome lawsuit against Apple Intelligence is not over yet. Apple is also being sued by shareholders for the stock price to fall due to repeated delays in the development of a new version of Siri. According to this case, the chance of losing the lawsuit is not small.
The Siri privacy scandal and this AI function misleading lawsuit have occurred one after another, showing that Apple is eager to catch up with competitors in the AI wave, but instead steps on consumers’ pain points in its products and marketing strategies. This $250 million settlement is undoubtedly a huge tuition fee paid by Apple for its “over-promise of AI ambitions.”
Source: KOCPC Chinese