Apple settles shareholder lawsuit over delayed Siri AI features
Updated
Updated · Reuters · May 5
Apple settles shareholder lawsuit over delayed Siri AI features
16 articles · Updated · Reuters · May 5
The $250 million deal, filed by shareholder Peter Landsheft in California federal court in 2024, still needs a judge's approval.
Investors said Apple advertised Siri AI upgrades at its 2024 developer conference for that autumn's iPhones, but launched the devices without them, hurting shareholders.
Apple admitted no wrongdoing, said it had released other Apple Intelligence features, and executives now say the delayed Siri overhaul will be unveiled at next month's developer conference.
After a $250M settlement for AI failures, can Apple regain consumer trust by outsourcing its intelligence to Google?
Will Apple's planned 'AI App Store' with its 30% cut create the next tech gold rush or stifle innovation?
Is Apple's new 'platform' strategy just an admission it has lost the AI race to rivals like Google and Microsoft?
Apple’s $250 Million Siri False Advertising Settlement: Delayed AI Features and Consumer Compensation
Overview
Apple faced a $250 million settlement in 2026 after a false advertising lawsuit claimed it misled consumers by promoting advanced Siri features as available at the iPhone 16 launch in September 2024, while the actual release was delayed until March 2025. This delay was caused by technical challenges, including abandoning the initial Siri architecture and a leadership change, combined with Apple's privacy-focused and ecosystem-driven AI approach. The gap between marketing promises and delivery led to consumer disappointment and legal action. Alongside a separate $95 million privacy settlement, these issues triggered increased regulatory scrutiny, shareholder lawsuits, and a significant drop in Apple's stock value, prompting Apple to partner with Google to accelerate AI development.