Apple Settles $250 Million Apple Intelligence Lawsuit, Agrees to $95 per iPhone Payout

For the past few years, Apple has been trying to enter the AI race but has faced serious setbacks on the way. The long-awaited Apple Intelligence, which was meant to be a turning point, became a source of constant frustration and garnered serious allegations from consumers. One such case has been the ongoing people vs Apple Inc. lawsuit, which accused the Cupertino brand of false Siri AI advertisements and promises. It has now finally concluded with the verdict going against Apple and in favour of the people.

Apple Settles $250 Million Apple Intelligence Lawsuit

On Monday, May 6, 2026, the United States Northern California District Court made its verdict for the Peter Landsheft (people) vs Apple Inc. lawsuit, swinging in favour of the public. As per the now publicly available court order, Apple has agreed to pay a settlement amount of $250 million (approximately Rs 25 crores) and proceed with a maximum sum of $95 (approximately Rs 9,100) per iPhone settlement, depending on the severity of the individual filing.

It is important to note that every plaintiff is guaranteed $25 (approximately Rs 3,000) as the final settlement payment and based on the number of filings, it can reach up to $95. The verdict also highlights the areas of contempt from Apple and how the consumer in general and the public at large has been misled with Apple Intelligence promises.

One of the key accusations that Apple faced was ill intent in “promoted AI capabilities that did not exist at the time, do not exist now, and will not exist for two or more years” in order to boost iPhone sales. Even the promised release of a better Siri made in 2024, has not arrived yet. These two were the primary outlines that helped the District Court reach its verdict.

However, even though Apple has agreed to the settlement, the iPhone-maker alleges no wrongdoing. This is even after the Better Business Bureau’s National Advertising Division, the US advertising watchdog, also concluded that Apple falsely suggested the new AI-powered Siri was “available now”.

Hence, as of Tuesday, May 6, 2026, roughly 36 million iPhones are now eligible for a final settlement payment. These include:

It is important to note that all claims brought in the USA between June 10, 2024 to March 29, 2025, are eligible for the settlement amount. Any new case brought after that will be taken into verdict but the settlement clause will not extend to those iPhone users since proceedings were already in motion.

That said, with the Gemini-powered Siri app scheduled to go official at the WWDC 2026 event, we hope users will finally be able to see Apple's AI prowess and turn the tide for the Cupertino brand in the AI race.