Apple has agreed to pay $250m (£184m) to US iPhone buyers in a landmark lawsuit alleging false advertising about the artificial intelligence (AI) features on their devices.

The settlement, filed Tuesday in California federal court, covers iPhone 15 and 16 users who purchased between June 2024 and March 2025. It stems from claims that Apple misled customers about the capabilities of its Siri voice assistant, which was branded as part of a suite called 'Apple Intelligence'.

Apple denied any wrongdoing but agreed to resolve the large class action lawsuit in a bid to focus on product development rather than legal battles."We resolved this matter to stay focused on doing what we do best," an Apple spokeswoman said, "delivering the most innovative products and services to our users."

The lawsuit alleged that Apple's marketing about new AI features was false advertising. According to lawyers, these capabilities were either non-existent or promised for a future release far beyond the current timeline.

Outgoing CEO Tim Cook has often faced criticism for not being innovative enough with Apple’s products. This settlement could be seen as part of a broader strategy to address such concerns and maintain user trust in the face of growing competition from other tech giants.