Today: 13 May 2026
Apple’s $250 Million Siri Payout Hits iPhone Buyers After AI Promise Fell Short
6 May 2026
2 mins read

Apple’s $250 Million Siri Payout Hits iPhone Buyers After AI Promise Fell Short

SAN FRANCISCO, May 6, 2026, 01:43 PDT

Apple has reached a $250 million settlement to resolve a U.S. class action accusing it of false advertising over delayed Siri AI features, according to a court document. Filed Tuesday in San Jose federal court, the agreement—still subject to a judge’s signoff—does not require Apple to admit any wrongdoing. The deal addresses one of the consumer lawsuits linked to Apple’s Apple Intelligence launch.

The timing is delicate for Apple. The company is aiming to restore trust in Apple Intelligence—its AI features for iPhone, iPad, and Mac—after pledging an upgraded, more personal Siri. That promise came as competitors pushed ahead with generative AI, which creates text, images, and other content from user prompts.

The lawsuit throws a wrench into Apple’s iPhone upgrade narrative. According to the complaint, plaintiffs allege Apple’s marketing convinced customers they’d see better Siri capabilities on the latest models. The Guardian reports a Morgan Stanley survey highlighted that, for would-be iPhone buyers, an upgraded Siri topped their wish list.

The lawsuit, a class action led by specific plaintiffs on behalf of a broader group, applies to U.S. buyers who picked up eligible devices from June 10, 2024, through March 29, 2025. According to the settlement agreement, the covered models are iPhone 16, iPhone 16e, iPhone 16 Plus, iPhone 16 Pro, iPhone 16 Pro Max, iPhone 15 Pro, and iPhone 15 Pro Max.

Most eligible claimants are looking at a default payout of $25 per device, though the actual amount could climb to $95 depending on how many valid claims are filed and a few other variables. The settlement’s $250 million fund is non-reversionary—meaning whatever portion isn’t distributed won’t revert to Apple, according to the proposed agreement.

Apple spokesperson Marni Goldberg told The Verge the company “resolved this matter to stay focused” on its products and services. Apple highlighted it’s rolled out dozens of Apple Intelligence features—Visual Intelligence, Live Translation, Writing Tools, Genmoji, Clean Up among them. The Verge

The conflict stems from Apple’s 2024 marketing campaign. During its Worldwide Developers Conference that year, Apple rolled out Apple Intelligence, touting it as a system that merges generative models with users’ personal context. The company also highlighted new Siri capabilities—features designed to pull data from multiple apps and carry out tasks for users.

Competition is heating up. On Tuesday, Reuters said Apple is working to allow users to pick third-party AI models for certain features in iOS 27, iPadOS 27, and macOS 27—part of its push to keep pace with Alphabet and Microsoft, both of which have launched AI features at a faster clip.

Plaintiffs’ counsel cast the settlement as a shot across the bow for AI marketing. Brian Danitz, interim co-lead counsel and partner at Cotchett, Pitre & McCarthy, said it was “one of the largest in a false advertising case.” Ryan Clarkson, who leads Clarkson Law Firm, described companies and regulators as standing “at an inflection point with AI.” Business Wire

Apple was under fire before for these ads. The Better Business Bureau’s National Advertising Division found Apple misled consumers by implying the new AI-driven Siri was “available now,” the Guardian reported. Apple ended up pulling the ads in question. The Guardian

The payout isn’t set in stone yet. U.S. District Judge Noël Wise has a preliminary approval hearing lined up for June 17 at 9 a.m. in San Jose. What people actually receive per device will hinge on the number of valid claims filed, along with court-approved fees, costs for notifying claimants, and any objections that come up.

Apple may have dodged a lawsuit with the settlement, but the real challenge still looms: can it actually pull off the Siri revamp it’s pitched as central to its AI strategy? New Siri features are due for a reveal at Apple’s developer conference next month, according to Apple execs cited by Reuters.

Stock Market Today

  • Top Undervalued TSX Stocks Offering Value Opportunities in May 2026
    May 13, 2026, 9:13 AM EDT. As geopolitical concerns persist, the TSX shows resilience with investors focusing on fundamentals over short-term oil price shifts. Ten Canadian stocks stand out as undervalued based on discounted cash flow estimates, including Topicus.com (TSXV:TOI) at a 42.2% discount and Timbercreek Financial (TSX:TF) at 46.7%. Almonty Industries (TSX:AII), a tungsten miner, trades 31.1% below fair value amid strong revenue growth projections, while apparel retailer Aritzia (TSX:ATZ) is 39% undervalued with earnings growing 21.7% annually. These selections highlight potential buying opportunities as companies outpace market averages and offer returns supported by operational improvements and expansion strategies.

Latest articles

Crypto ATM Crackdown Spreads as $389 Million Scam Losses Put Kiosks in Crosshairs

Crypto ATM Crackdown Spreads as $389 Million Scam Losses Put Kiosks in Crosshairs

13 May 2026
Spokane Valley has ordered all virtual-currency kiosks removed within 30 days after police linked them to fraud and one suicide. The FBI reported $389 million in losses tied to crypto ATMs in 2025, with older adults suffering most. Minnesota banned the machines statewide this month. Industry groups argue such bans hurt legitimate users and dispute fraud allegations.
Hot PPI Shock Hits Wall Street As Oil Inventory Test Looms

Hot PPI Shock Hits Wall Street As Oil Inventory Test Looms

13 May 2026
U.S. producer prices rose 1.4% in April, the largest monthly gain since March 2022, with the Producer Price Index up 6.0% year-over-year, the Bureau of Labor Statistics said Wednesday. Energy prices surged 7.8%, gasoline 15.6%. S&P 500 futures turned negative after the data. The American Petroleum Institute reported U.S. crude inventories fell by 2.2 million barrels last week.
Antelope Enterprise Stock Jumps Again as Bitcoin Gain and Buyback Put AEHL in Focus

Antelope Enterprise Stock Jumps Again as Bitcoin Gain and Buyback Put AEHL in Focus

13 May 2026
Antelope Enterprise Holdings shares jumped 47.55% to $2.11 Tuesday after a 135% surge Friday. The company reported $190,000 in gains from its Bitcoin “Genius Plan” and approved a $95,000 share buyback. A May 11 SEC filing showed Streeterville Capital and affiliates reported zero ownership of Antelope shares. Nearly 49.8 million shares traded Tuesday.

Popular

GitLab Layoffs Send Stock Lower as AI ‘Agentic Era’ Bet Tests Investor Patience

GitLab Layoffs Send Stock Lower as AI ‘Agentic Era’ Bet Tests Investor Patience

12 May 2026
GitLab Inc. will cut jobs and restructure global operations to fund artificial-intelligence agents, sending shares down 9.6% to $23.18 Tuesday. The company did not specify the number of roles affected. CEO Bill Staples said most savings will be reinvested, with details expected at the June 2 earnings call. Raymond James downgraded the stock, citing execution risks and slowing growth.
XRP Price Today: Why the $1.40 Line Is Back in Focus for Traders
Previous Story

XRP Price Today: Why the $1.40 Line Is Back in Focus for Traders

SpaceX Starlink Launch: Falcon 9 Sends 24 Satellites From Vandenberg as May Schedule Builds
Next Story

SpaceX Starlink Launch: Falcon 9 Sends 24 Satellites From Vandenberg as May Schedule Builds

Go toTop