Apple has agreed to pay $250 million to settle class action lawsuits claiming it misled consumers about the capabilities of Apple Intelligence. The settlement, announced Tuesday, resolves claims that the tech giant oversold what its AI system could do during its 2024 rollout. iPhone 16 and certain iPhone 15 owners who purchased devices between June 2024 and March 2025 can claim up to $95 per device.

The lawsuits alleged Apple advertised features that weren't available when iPhones shipped in September 2024. The company promised improvements to Siri, notification summaries, and writing assistance, but customers received devices without these capabilities. Apple disabled faulty notification summaries that misrepresented news reports, and in March 2025 delayed an upgraded Siri release due to quality problems. The company denied any wrongdoing as part of the settlement.

The case underscores Apple's struggles in the AI race against rivals like Microsoft and Google, which have built their own AI models while Apple fell behind. The company retired its head of AI, John Giannandrea, in December and announced in January it would use Google's Gemini to power its AI products, including Siri.