Apple to pay iPhone buyers $250 million after lawsuit claims it hyped non-existent AI in ‘bait and switch’
By Ethan Baron
Published on May 6, 2026.
Apple has agreed to pay $250 million to people who bought certain newer-model iPhones to settle a class-action lawsuit claiming it hyped artificial intelligence features that didn't exist. The lawsuit, filed in San Jose U.S. District Court, alleged that Apple's statements and ads heavily promoted “Apple Intelligence” a set of purportedly advanced generative AI features centered around its chatbot Siri. However, it was until March 2025 after millions of customers bought iPhones, anticipating the features, that Apple admitted they did not exist. In agreeing to settle the case, Apple denied wrongdoing and stated it was focused on delivering the most innovative products and services to users. The settlement still requires a judge's approval.
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