Apple settles $250 million lawsuit over delayed AI features

Apple has agreed to pay $250 million to settle claims that it misled customers about AI capabilities on new iPhones. Eligible buyers of certain models may receive between $25 and $95 each.

The settlement covers purchases of iPhone 16 models and iPhone 15 Pro variants made between June 10, 2024, and March 29, 2025. An estimated 36 million customers could qualify for payments.

Apple reached the agreement in May to resolve a shareholder lawsuit alleging deceptive advertising of Apple Intelligence features. Those advanced capabilities arrived later than promised after the devices launched.

A court was scheduled to approve the deal on June 17, 2026. Once approved, Apple will share customer data with administrator Verita, which will send notices and direct claims through a new website.

Payments are expected to begin after September 2026 following a notice period and final court steps. An Apple spokesperson stated the company resolved the matter to focus on delivering innovative products.

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