Apple has agreed to a $250 million settlement to resolve a class-action lawsuit accusing the company of misleading consumers about AI capabilities in its iPhone devices. The lawsuit alleged that Apple exaggerated the AI functionalities of its Apple Intelligence feature, introduced in June 2024, which were absent in the iPhone 16 models released in September 2024. Despite denying any wrongdoing, Apple will compensate U.S. consumers who bought eligible iPhone 15 and iPhone 16 models between June 10, 2024, and March 29, 2025, with payments ranging from $25 to $95 per device. The settlement affects approximately 36 million phones sold in the U.S. Apple has also announced plans to integrate Google's Gemini to enhance its AI offerings, including Siri.