If You’re Hoping to Collect on Apple’s $250M AI iPhone Settlement, You’ll Have to Wait a Year

If you purchased an iPhone 16 or iPhone 15 when they were released in order to jump into promised Apple Intelligence features, you were probably disappointed: The signature AI abilities were nowhere to be found, and only a few related features appeared later.

The good news is that you may be entitled to receive a portion of a quarter-billion-dollar lawsuit. The bad news is that you’ll have to wait more than a year to see any of it.

Apple settled a false advertising lawsuit in May, agreeing to pay $250 million to customers who bought the iPhone 16 and some iPhone 15 models during a specified period. The lawsuit alleged that Apple misled customers by promising AI features that didn’t ship when the new devices did. Payouts between $25 and $95 per eligible device are expected.

Apple lit up its flagship New York City store to resemble Siri’s new color scheme.
Bridget Carey/CNET

In an earlier statement to CNET Managing Editor David Lumb, an Apple spokesperson said, “Apple has reached a settlement to resolve claims related to the availability of two additional features. We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users.”

Now the case has moved forward as of July 17. According to an email from Clarkson Law Firm, “The Court has granted preliminary approval of the settlement … This means the Court has reviewed the proposed terms and found them sufficient to move forward to the next phase; it is not a final ruling on the settlement’s fairness.”

Why is there a lawsuit over Apple Intelligence?

When Apple advertised its new iPhone 16 lineup in 2024, it emphasized how the models were optimized for AI features such as an enhanced Siri that could act as an intelligent agent. When the phones did arrive, Apple Intelligence wasn’t yet ready; its first features didn’t arrive until iOS 18.1, five weeks later.

According to the proposed settlement, “Apple allegedly saturated the market with deceptive ads, inducing consumers to purchase iPhones based on the promise of certain enhanced Siri features.”

Some features of Apple Intelligence did ship soon after the introduction of the iPhone 16 and iOS 18, including Visual Intelligence, Live Translation, Writing Tools, Genmoji and Clean Up. But those weren’t the advanced features Apple highlighted. In fact, the type of intelligent interactions Apple advertised are only starting to show up in Siri AI, which is part of iOS 27 that’s expected to be released later this year. The public beta of iOS 27 is available now.

Who is eligible for the $250 million settlement?

Customers who purchased one of the following devices between June 10, 2024, and March 29, 2025, are eligible to receive a settlement payment:

iPhone 16
iPhone 16E
iPhone 16 Plus
iPhone 16 Pro
iPhone 16 Pro Max
iPhone 15 Pro
iPhone 15 Pro Max

The iPhone 15 Pro and iPhone 15 Pro Max are included because they had the processor and memory to run Apple Intelligence features.

It’s estimated that approximately 36 million customers are eligible for this settlement.

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How to claim your portion of the settlement

For now, you need to wait.

As set forth in the settlement, Apple will provide a list of eligible customers and their contact information to a settlement administrator.

After the data has been verified, the company Verita will send email and postal notices to those customers directing them to a settlement website. That site has not yet been created. The deadline for filing your claim will be 90 days after your notice arrives.

When can you expect to receive a settlement payment?

According to the settlement, Apple needed to provide the information about affected customers within five days of the settlement approval. As of late July, preliminary approval has been granted by the court.

After the data is provided and verified, a 45-day notice period begins to inform potential consumers that they’re eligible for a payment.

According to the July 17 motion, the final approval hearing is scheduled for the morning of Sept. 29, 2027.

Provided approval is granted, that puts the first checks or deposits arriving sometime within a 60-calendar-day window after September 2027, depending on court dates and possible extensions.