SAN FRANCISCO, California: Apple Inc. has agreed to a $250 million settlement that could see millions of iPhone users receive payments over claims it misled customers about its artificial intelligence features.

The class-action case, filed in federal court in California, alleged that Apple promoted advanced AI upgrades for its Siri assistant that were not yet available, prompting consumers to buy newer devices under false expectations.

The proposed settlement, which still requires court approval, would cover around 37 million iPhones sold in the United States between June 10, 2024, and March 29, 2025. Eligible models include the iPhone 16 lineup as well as the iPhone 15 Pro and Pro Max.

If approved, customers could receive at least $25 per device, with payouts potentially rising to as much as $95 depending on the number of claims filed and other factors, according to court documents. Notifications will be sent by email or mail, allowing users to submit claims through a settlement website.

The lawsuit argued that Apple's marketing campaign for its "Apple Intelligence" features, unveiled alongside the iPhone 16, overstated the readiness of enhanced Siri capabilities.

Buyers were frustrated when the promised upgrades were delayed, with the complaint stating they "would not have purchased the Eligible Devices or would have paid significantly less, had they known Enhanced Siri features were not available."

"Apple has reached a settlement to resolve claims related to the availability of two additional features," the company said in a statement. "We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users."

The case comes as Apple faces growing pressure to keep pace with rivals like Google and Samsung in the race to roll out consumer-facing AI tools. While Apple has introduced features such as Visual Intelligence and Live Translations, its long-promised Siri overhaul remains in development.