Apple’s Delayed AI Features Put $250 Million Settlement Before Court

SAN JOSE, Calif. — A $250 million class-action settlement resolving allegations that Apple Inc. misled consumers about the initial capabilities of its artificial intelligence tools is moving toward final judicial review in California federal court.

The legal action began with promotional campaigns for “Apple Intelligence,” the suite of generative AI tools unveiled at Apple’s Worldwide Developers Conference (WWDC) on June 10, 2024. Marketing materials for the iPhone 16 hardware line, launched in September 2024, highlighted deeply integrated conversational AI, custom image creation tools such as Genmoji, and enhanced Siri capabilities integrated with OpenAI’s ChatGPT.

According to court filings, consumers were given a reasonable expectation that the integrated AI features would be operational when the devices launched. Key components of the software suite instead rolled out in stages over subsequent months, while core Siri upgrades and full ChatGPT integration experienced delays beyond initial expectations.

The agreement was negotiated to resolve litigation over delayed software deployments and establishes a court-monitored framework in the U.S. District Court for the Northern District of California. Presiding in San Jose, the court has scheduled a final approval hearing for Feb. 24, 2027, to determine whether the financial settlement and proposed distribution plan are fair, reasonable, and adequate.

Eligible class members who submit valid claims will receive a baseline cash payment of $25 per covered hardware unit. Pro-rata adjustments could raise the payout to a maximum of $95 per device, depending on the aggregate volume of approved claims processed relative to the net settlement fund.

The class parameters cover U.S. residents who purchased an iPhone 15 Pro, iPhone 15 Pro Max, or any model in the iPhone 16 series between June 10, 2024, and March 29, 2025. Original retail buyers qualify, while secondary market resale purchases are excluded. Commercial enterprises and business entities that purchased qualifying devices directly during the eligible timeframe may also submit claims.

Claimants must submit formal claim forms by Dec. 21, 2026. The administrative terms require current contact details, documentation verifying original device purchase and ownership, and a formal affirmation that the buyer expected to receive specific Siri and Apple Intelligence functions at purchase that were not delivered within the expected period.

Court documentation states that incomplete submissions, inaccurate information, and claims filed after the December 2026 cutoff will be rejected. Disbursements by physical or digital checks will be processed after the final court approval hearing in early 2027, contingent upon resolution of any potential legal appeals.

The litigation comes as major technology companies face broader regulatory and legal challenges while racing to integrate generative AI platforms into consumer hardware ecosystems alongside competitors like Alphabet Inc. and Microsoft Corp. The Northern District of California previously handled high-profile tech consumer litigation, including a $500 million class-action settlement approved in 2020 over iPhone device performance management practices.