iPhone users can check if they’re eligible for Apple's $250m payout over AI accusations

Apple has agreed to a multi-million dollar payout to terminate a class action lawsuit that accuses them of misleading people about Artificial Intelligence features of the iPhone.

The Californian tech-titan was accused of promoting 'AI capabilities that did not exist at the time, do not exist now, and will not exist for two or more years,' in a bid to boost sales, according to a settlement filed in a Californian federal court.

It went on to accuse Apple of false advertising, specifically Apple's claims of a more 'personalized' version of Siri that has still not been released, allegedly misleading millions of consumers into purchasing its devices.

The complaint says that Apple allegedly ran several deceptive ads, encouraging people to purchase the iPhone on 'the promise of certain Enhanced Siri features' that Apple had announced at its Worldwide Developers Conference in 2024, just before the release of the iPhone 16.

Apple has not admitted any wrongdoing, despite the enormous payout, in a deal that will put an end to the lawsuit that has rumbled on since last year.

Apple are accused of lying to consumers about the capability of SIRI (Jason Henry/Bloomberg via Getty Images)

How much will Apple payout over false AI claims?

Apple will now have to pay out a collective $250m. This works out between $25 and $95 per eligible customer.

An Apple spokesperson said: "Apple has reached ​a settlement to resolve claims related to ​the ⁠availability of two additional features.

"We resolved this matter to stay focused on doing what we do ⁠best, delivering ​the most innovative products and ​services to our users."

Which customers are eligible for Apple's payout?

The settlement, which includes no admission of wrongdoing by Apple, covers about 36 million devices in the US.

More specifically, it applies to those who bought an iPhone 15 or iPhone 16 between June 2024 and March 2025.

Lawyers pursuing the case said that Apple's marketing around the AI features was false advertising.

Tim Cook recently announced his departure from Apple (Photo by Fabrice COFFRINI / AFP via Getty Images)

Did Apple fall behind OpenAI?

Speaking to the BBC, they said that Apple did this in a bid to 'catch up' in the Big Tech race, following the huge popularity of models from Anthropic and OpenAI.

The joint claim was bought by Clarkson Law Firm.

On a press release on their website, Ryan Clarkson from the firm said: “We are proud to secure a historic settlement on behalf of consumers who should feel confident and protected when deciding where to spend their hard-earned dollars.

“We are at an inflection point with AI, and the choices companies and regulators make now will shape how this technology impacts everyday people.”

Clarkson Law Firm have been approached for additional comment.

The settlement now faces one final hurdle, and must be approved by Judge Judge Noël Wise of the federal district court for the northern district of California.

The hearing is set for 17 June.