Apple to pay $250M in iPhone 16 AI enhancements class action settlement

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Apple agreed to settle a $250 million class action over alleged false advertising of AI enhancements in the iPhone 16, with a June court hearing set. Plaintiffs claimed Siri enhancements were missing at launch, while Apple denies wrongdoing and highlights delivery of 20 Apple Intelligence features plus future Siri updates.

1. Settlement Agreement Details

Apple agreed to pay $250 million to settle a class action alleging deceptive marketing of AI enhancements in the iPhone 16. The settlement requires judicial approval and a hearing is set for June before payments can be distributed to qualifying U.S. purchasers.

2. Allegations Against iPhone 16 AI Feature Claims

Plaintiffs, led by a California consumer, argued that advertised Siri improvements and other Apple Intelligence features were not available at the iPhone 16 launch in September 2024. They claimed consumers paid for technology that did not exist at the time of purchase.

3. Apple Response and Future AI Updates

Apple denies the allegations and notes it has rolled out more than 20 Apple Intelligence features since launch, with additional Siri enhancements planned for future software updates. The company resolved the lawsuit to focus on delivering its product roadmap and avoid prolonged litigation.

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