Apple has agreed to pay $250 million to settle a class action lawsuit that accused it of misleading customers about the availability of its Apple Intelligence features. The proposed settlement would apply to people in the US who purchased all models of the iPhone 16 and the iPhone 15 Pro between June 10th, 2024 and March 29th, 2025.

People who submit qualifying claims can receive $25 for each eligible device, ‘which may decrease or increase up to $95 per device, depending on claim volume and other factors,’ according to Clarkson Law Firm, the legal team behind the class action lawsuit. The settlement will resolve a 2025 lawsuit, alleging Apple’s advertisements created a ‘clear and reasonable consumer expectation’ that Apple Intelligence features would be available with the launch of the iPhone 16.

The lawsuit claimed Apple’s products ‘offered a significantly limited or entirely absent version of Apple Intelligence, misleading consumers about its actual utility and performance.’ In a statement to The Verge, Apple spokesperson Marni Goldberg said the company ‘resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users.’

Apple previewed a series of AI-powered features coming to its iPhones during its June 2024 Worldwide Developers Conference, including a more personalized Siri. But when the iPhone 16 launched in September, Apple labeled it as ‘built for Apple Intelligence,’ as it lacked many of the capabilities it teased months earlier.

Instead, Apple gradually rolled out its new AI features, including Image Playground, Genmoji, and a ChatGPT integration in Siri. The company also delayed the launch of its more personalized Siri, which is now expected to arrive later this year. Last April, the National Advertising Division recommended that Apple ‘discontinue or modify’ its ‘available now’ claim for the Apple Intelligence page on its website.