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Apple settles $250M lawsuit over missing iPhone AI features

Apple will pay $250 million to iPhone 16 and 15 buyers after a lawsuit over delayed AI features. Eligible users can claim up to $95 per device, depending on the number of approved claims.
Apple settles $250M lawsuit over missing iPhone AI features Nerds Magazine © nerdsmagazine.com
Apple settles $250M lawsuit over missing iPhone AI features © nerdsmagazine.com

Buyers who lined up for the iPhone 16 or iPhone 15 expecting Apple Intelligence out of the box found themselves waiting. The promised AI features didn't show up at launch, sparking a legal fight that now forces Apple to pay out $250 million.

The settlement covers anyone who bought an iPhone 16, iPhone 16E, iPhone 16 Plus, iPhone 16 Pro, iPhone 16 Pro Max, iPhone 15 Pro, or iPhone 15 Pro Max between June 10, 2024, and March 29, 2025. Depending on how many people file, compensation lands between $25 and $95 per device. Up to 36 million buyers could qualify, but the final amount per device depends on the total number of claims, according to the Simply Wall St case summary.

The settlement does not apply to all iPhone buyers, but specifically to claims regarding delayed Siri features powered by Apple Intelligence on certain eligible models.

Clarkson Law Firm kicked off the lawsuit in May, accusing Apple of hyping up AI features that weren't ready. Buyers got less than advertised until iOS 18.1 finally delivered the missing tools weeks later. Court filings show Judge Noel Wise in the Northern District of California gave preliminary approval to the $250 million deal on July 17, 2026, in the case Landsheft v. Apple Inc. (No. 5:25-cv-02668-NW). The final approval hearing, originally set for August 13, 2026, was moved up to February 24, 2027, in San Jose federal court.

Apple's agreement also addresses two other delayed features. After a 45-day notice and data check, first payments are set to go out within 60 days after February 2027, though court schedules could shift that date. Apple settled without admitting any wrongdoing, as spelled out in the official documents.

Starting September 21, buyers can visit SmartphoneAISettlement.com to check if they qualify and file a claim. The deadline is December 21, 2026. The process asks for purchase details and verification, then the payout follows once the court process ends. Verita, the settlement administrator, will notify eligible buyers by email or mail. All eligibility checks run through the official site, as confirmed by a USA Today report.

Apple Intelligence features require a compatible device, and the official list of supported iPhones includes only the iPhone 15 Pro and iPhone 15 Pro Max, while the standard iPhone 15 is not eligible.

Apple Support

Apple has faced legal and consumer pushback before. The iPhone 18 Pro, for example, saw a spike in returns in South Korea after a separate technical glitch, as reported earlier. This time, the fight centers on AI promises that didn't pan out and the price Apple now pays for overpromising features at launch.

Apple's $250 million payout stands as a direct response to unmet AI claims. Buyers who act within the claim window can secure compensation tied to the devices they purchased.

Topics:
Mobile Technology iPhone & iOS Artificial Intelligence #iOS Releases #Mobile Device Features #iPhone Devices #AI Assistants #Generative AI #AI Hallucinations
Priya Mehta Consumer Technology Writer Nerds Magazine
Technology Writer

Priya Mehta

Priya Mehta is a Technology Writer at NerdsMagazine covering mobile technology, apps, AI tools, privacy, subscriptions, and everyday software problems. She approaches technology from the user's point of view, focusing on confusing settings, hidden costs, permissions, reliability, and whether new features are genuinely useful in daily life.