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By Suzanne Blake
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Millions of iPhone users who may be eligible for a share of Apple's $250 million settlement over delayed artificial intelligence features are being told not to expect a payment anytime soon.
Although a federal court has granted preliminary approval to the settlement, the legal process still has several steps to clear before customers can receive compensation, meaning payouts are unlikely to arrive for at least another year.
Why It Matters
The case affects an estimated 36 million to 37 million Apple customers who purchased eligible iPhone models after the company heavily promoted its Apple Intelligence platform and an upgraded Siri assistant that were not available when the devices launched.
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While the settlement does not require Apple to admit wrongdoing, it has become one of the largest consumer settlements tied to AI-related marketing claims. Across the industry, there’s been growing scrutiny of how technology companies advertise artificial intelligence products.
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Why Apple Is Paying $250 Million
The class-action lawsuit alleged Apple misled consumers by advertising advanced AI-powered Siri capabilities as a key selling point for the iPhone 16 lineup and certain iPhone 15 models before those features were ready.
According to court filings cited by reports on the settlement, Apple's marketing campaign encouraged customers to purchase devices based on promises of enhanced Siri features that were ultimately delayed.
“Roughly 36 million customers are eligible, but the real story isn't the $25-$95 per device,” Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek.
“It's that Apple shipped products in June 2024 on the promise of features that didn't show up for nearly two years. That's a fundamental gap between marketing and reality, not ‘features delayed a few weeks.’"
Some Apple Intelligence features, including Writing Tools, Genmoji, Visual Intelligence and other AI functions, eventually arrived. However, the more advanced Siri capabilities highlighted in Apple's promotional materials were not available when consumers bought the devices.
“If you bought an iPhone 16 or eligible iPhone 15 Pro between June 2024 and March 2025, you bought it partly on the strength of Siri capabilities that literally did not exist,” Ryan said. “Apple didn't promise them for later. The ads showed them as central to why you wanted the new hardware. Then Apple shipped a phone without them.”
Apple agreed to settle the lawsuit in May.
"Apple has reached a settlement to resolve claims related to the availability of two additional features,” an Apple spokesperson said previously. “We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users."
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Why Customers Have To Wait
The settlement has only received preliminary court approval, meaning a judge has determined it can move forward but has not yet issued a final ruling.
Before any money can be distributed, class members must be notified, given an opportunity to submit claims, and allowed time to object or opt out. Courts also generally must resolve any appeals before payments are issued.
As a result, eligible customers are expected to wait more than a year before receiving checks or direct payments.
Who Is Eligible?
The settlement covers U.S. consumers who purchased:
- Any iPhone 16 model
- iPhone 15 Pro
- iPhone 15 Pro Max
between June 10, 2024, and March 29, 2025.
It’s expected that approximately 36 million to 37 million devices could qualify.
How Much Could Customers Receive?
Eligible consumers are expected to receive between $25 and $95 per device, depending on the number of valid claims filed and other settlement factors. The final amount will not be known until the claims process is complete.
“As companies race to sell hardware around artificial intelligence, they may face increasing legal and financial consequences if marketing gets too far ahead of what the technology can actually do,” Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek.
The Settlement Details
What Happens Next
The settlement must still undergo the final approval process in federal court before claims can be paid. Following final approval, eligible customers are expected to receive notices explaining how to submit claims.
Any appeals or additional court proceedings could further delay distributions.
And for the tech industry, the implications of the data could be far-reaching.
“For the tech industry broadly, the bigger risk isn't the $250 million check, it's the precedent,” Ryan said. “If Apple took a $250 million hit for overpromising AI on a launch date, every other company now has a dollar value attached to the gap between ‘this feature is coming’ and ‘this feature actually works.’”
Contact Newsweek editors on this story: Jason Lemon and Sam Wilson.
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