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In a significant blow to its reputation for innovation and transparency, Apple has agreed to pay $250 million to settle a class-action lawsuit accusing the tech giant of misleading millions of customers by aggressively promoting artificial intelligence features for Siri that did not actually exist.

The lawsuit claimed that Apple heavily marketed advanced “personalized” AI capabilities for its voice assistant in late 2024 to drive sales of new iPhones, even though those features were not available at the time, are still not available today, and may not arrive for another two years or more.

The Allegations

Plaintiffs argued that Apple’s marketing campaign created false expectations, with the company suggesting the upgraded Siri was ready for users. The Better Business Bureau’s National Advertising Division, the U.S. advertising watchdog, had already ruled that Apple falsely advertised the new AI-powered Siri as “available now.”

The settlement, filed Tuesday and still requiring court approval, covers approximately 36 million devices — including the iPhone 16, iPhone 15 Pro, and 15 Pro Max — purchased in the United States between June 10, 2024, and March 29, 2025. It includes no admission of wrongdoing by Apple.

Eligible class members could receive up to $25 per device, with potential payouts reaching $95 depending on the final number of approved claims.

Apple’s Response

Apple told the Financial Times it resolved the matter “to stay focused on what we do best: delivering the most innovative products and services to our users.”

However, the lawsuit highlighted how a Morgan Stanley survey showed that the promised “enhanced Siri” was the single most anticipated feature among potential iPhone buyers. Apple ran a major advertising campaign promoting these capabilities before later delaying them indefinitely and pulling the ads.

Ryan Clarkson, founder of the law firm that brought the case, called the settlement historic, saying:

“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 make now will shape how this technology impacts everyday people.”

The Real Story

This case exposes a troubling pattern in Big Tech’s approach to artificial intelligence marketing. Companies like Apple are racing to position themselves as AI leaders, often hyping features that exist more in promotional videos than in reality. When those promises fail to materialize, it is everyday consumers who feel deceived after spending premium prices on flagship devices.

While $250 million may seem large, it is relatively modest for a company of Apple’s scale — especially when weighed against the massive sales boost the AI hype likely generated for the iPhone 16 series.

The settlement still requires final approval from Judge Noël Wise in the Northern District of California on June 17.

This case may serve as a warning for the entire tech industry: in the rush to dominate the AI narrative, overstating current capabilities could carry real financial and reputational consequences.