Apple has agreed to pay $250 million to settle a class-action lawsuit alleging it misled consumers about the AI capabilities of its iPhone devices. The lawsuit accused Apple of exaggerating non-existent AI features when promoting Apple Intelligence in June 2024, and of not including the promised AI features in the iPhone 16 models shipped in September of the same year. While Apple denies any wrongdoing, it has agreed to compensate U.S. consumers who purchased the relevant iPhone 15 and iPhone 16 models between June 10, 2024, and March 29, 2025, with amounts ranging from $25 to $95 per device. The settlement covers approximately 36 million phones sold in the U.S. Apple has already announced it will use Google's Gemini to power its AI products, including Siri.