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iPhone Buyers Can Claim Payouts in $250M AI Deal

The class-action settlement over unavailable Apple Intelligence features awaits final court approval scheduled for February 2027.

Updated on Nov. 3, 2026 in Artificial Intelligence

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Apple agreed to pay $250 million to settle a class-action lawsuit alleging it advertised AI features, including an upgraded Siri, that were unavailable when the iPhone 16 launched in 2024. AI Illustration. Upload story photo >

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Apple agreed to a $250 million class-action settlement over allegations it advertised AI-powered features, including an upgraded Siri, that were unavailable when it promoted the iPhone 16 lineup in 2024. Apple denied wrongdoing. The development is a court settlement, not a product, and the features at issue were announced but not yet available at the time of the marketing.

Why it matters

The case turns on whether consumers bought devices based on AI capabilities that did not yet exist, a question that will matter as AI features are marketed ahead of release. The settlement signals that promotional claims about AI functionality can carry legal and financial consequences for hardware makers.

The settlement covers a specific device window and caps payouts per device. Because actual payouts depend on how many valid claims are filed, the per-device figure of $25 may not be the final amount paid to each claimant.

The players

Apple Inc.

Cupertino-based maker of the iPhone, whose Apple Intelligence features and iPhone 16 lineup are at the center of the settlement.

The details

The lawsuit alleged Apple promoted the iPhone 16 lineup in 2024 with AI-powered features, including an upgraded Siri, that were not available at launch. Eligible U.S. residents who bought an iPhone 15 Pro, iPhone 15 Pro Max, or any iPhone 16 model in the stated window can submit claims with contact information and a device serial number. Each eligible iPhone requires a separate form, and payments can be issued by check, direct deposit, PayPal, or Venmo.

Timeline

  1. June 10, 2024: Start of the eligible iPhone purchase window.

  2. March 29, 2025: End of the eligible iPhone purchase window.

  3. Dec. 21, 2026: Deadline to submit settlement claims.

  4. Feb. 24, 2027: Court scheduled to consider final approval.

The Tech Race

The settlement puts a price on announcing AI features before they ship, a practice common across consumer hardware competitors racing to market AI capabilities. It establishes that promotional claims about unreleased AI functions can be challenged in court.

Eligible U.S. buyers of an iPhone 15 Pro, iPhone 15 Pro Max, or iPhone 16 model in the stated window can file a claim at smartphoneaisettlement.com. Payment will follow final approval and depends on how many valid claims are submitted.

The takeaway

Watch the Feb. 24, 2027 court hearing on final approval, which determines whether and when payouts begin. Eligible buyers should submit separate forms for each qualifying iPhone before the Dec. 21, 2026 deadline.

What happens next

Claims can be submitted until Dec. 21, 2026, and the court will consider final approval on Feb. 24, 2027, after which payments will follow.

Further reading

For broader context on how AI capabilities are being built into consumer devices, see Artificial Intelligence.

More information

File or check a claim on the Apple Intelligence settlement claim form.

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