Settlement Reached in Major Tech Lawsuit: iPhone Users to Benefit
Users of a popular smartphone could find themselves receiving up to $95 in a legal settlement. The tech giant behind the phone agreed to a whopping $250 million settlement in a class-action lawsuit. The case revolved around allegations of misleading advertising about the artificial intelligence (AI) abilities of their phones.
Behind the AI Hype
When the company released a new version of their famous smartphone in 2024, they made big promises about AI enhancements for their virtual assistant. This was part of a broader software update that they classified as "Intelligence". Despite the hype, the company has been struggling to deliver these upgrades, even two years later.
The Lawsuit
The lawsuit was filed in a San Francisco federal court on behalf of American consumers. The claim was that the company had deceived customers with a marketing campaign that promised features that were not yet available. This, they argued, led customers into purchasing the devices under false pretenses.
Legal representatives for the smartphone users requested preliminary approval from the court for the proposed $250 million settlement. If the judge greenlights this, it will be one of the most substantial settlements in the company's history.
Who's Covered?
The settlement will apply to approximately 37 million devices purchased in the United States between mid-2024 and early-2025. This includes all models of the new smartphone and two versions of the previous model.
Eligible owners can expect a payment of at least $25 for each device. This amount could increase to as much as $95, depending on the number of claims that are filed and other factors.
Customers will receive notifications via email or mail about how to file a claim on the settlement website.
The Company's Response
The company has confirmed that it has reached a settlement to resolve the claims. In a public statement, they said, "We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users."
The company admitted to being taken by surprise by the high consumer interest in the AI features of their virtual assistant. Many customers were frustrated after finding out that these new features would not be released as soon as they had expected.
According to the lawsuit, customers "would not have purchased the Eligible Devices or would have paid significantly less, had they known Enhanced features were not available."
Still in Development
While the company is still working on its AI features, competition is heating up. Other tech companies have been introducing more AI technology in their devices. Despite the delay, the company is expected to reveal its new AI upgrade later this year.
In its statement, the company also pointed out that they have "introduced dozens of features" since the launch of their Intelligence software, including Visual Intelligence and Live Translations.
Users of a popular smartphone could find themselves receiving up to $95 in a legal settlement. The tech giant behind the phone agreed to a whopping $250 million settlement in a class-action lawsuit. The case revolved around allegations of misleading advertising about the artificial intelligence (AI) abilities of their phones.
Behind the AI Hype
When the company released a new version of their famous smartphone in 2024, they made big promises about AI enhancements for their virtual assistant. This was part of a broader software update that they classified as "Intelligence". Despite the hype, the company has been struggling to deliver these upgrades, even two years later.
The Lawsuit
The lawsuit was filed in a San Francisco federal court on behalf of American consumers. The claim was that the company had deceived customers with a marketing campaign that promised features that were not yet available. This, they argued, led customers into purchasing the devices under false pretenses.
Legal representatives for the smartphone users requested preliminary approval from the court for the proposed $250 million settlement. If the judge greenlights this, it will be one of the most substantial settlements in the company's history.
Who's Covered?
The settlement will apply to approximately 37 million devices purchased in the United States between mid-2024 and early-2025. This includes all models of the new smartphone and two versions of the previous model.
Eligible owners can expect a payment of at least $25 for each device. This amount could increase to as much as $95, depending on the number of claims that are filed and other factors.
Customers will receive notifications via email or mail about how to file a claim on the settlement website.
The Company's Response
The company has confirmed that it has reached a settlement to resolve the claims. In a public statement, they said, "We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users."
The company admitted to being taken by surprise by the high consumer interest in the AI features of their virtual assistant. Many customers were frustrated after finding out that these new features would not be released as soon as they had expected.
According to the lawsuit, customers "would not have purchased the Eligible Devices or would have paid significantly less, had they known Enhanced features were not available."
Still in Development
While the company is still working on its AI features, competition is heating up. Other tech companies have been introducing more AI technology in their devices. Despite the delay, the company is expected to reveal its new AI upgrade later this year.
In its statement, the company also pointed out that they have "introduced dozens of features" since the launch of their Intelligence software, including Visual Intelligence and Live Translations.