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Apple Settles $95 Million Lawsuit Over Siri Privacy Violations: Here's The Amount Affected Users Will Receive
AInvestThursday, Jan 2, 2025 11:14 pm ET
5min read
AAPL --


Apple Inc. (NASDAQ: AAPL) has agreed to pay $95 million to settle a class-action lawsuit alleging that its virtual assistant, Siri, violated users' privacy by eavesdropping on conversations without their knowledge or consent. The settlement, which still needs to be approved by a U.S. district judge, will provide compensation to tens of millions of consumers who owned iPhones and other Apple devices from September 17, 2014, through the end of last year.



The lawsuit, filed in 2019, claimed that Apple surreptitiously activated Siri to record conversations through iPhones and other devices equipped with the virtual assistant, even when users didn't seek to activate the virtual assistant with the trigger words, "Hey, Siri." Some of the recorded conversations were then shared with advertisers in an attempt to sell their products to consumers more likely to be interested in the goods and services.

Apple has not acknowledged any wrongdoing in the settlement, which still needs to be approved by U.S. District Judge Jeffrey White. Lawyers in the case have proposed scheduling a Feb. 14 court hearing in Oakland to review the terms.

If the settlement is approved, tens of millions of consumers who owned iPhones and other Apple devices from September 17, 2014, through the end of last year could file claims. Each consumer could receive up to $20 per Siri-equipped device covered by the settlement, although the payment could be reduced or increased, depending on the volume of claims. Only 3% to 5% of eligible consumers are expected to file claims, according to estimates in court documents.

Eligible consumers will be limited to seeking compensation on a maximum of five devices.



The settlement represents a sliver of the $705 billion in profits that Apple has pocketed since September 2014. It's also a fraction of the roughly $1.5 billion that the lawyers representing consumers had estimated Apple could have been required to pay if the company had been found of violating wiretapping and other privacy laws had the case gone to a trial.

The attorneys who filed the lawsuit may seek up to $29.6 million from the settlement fund to cover their fees and other expenses, according to court documents.

Apple agreed to pay $95 million in cash to settle a proposed class action lawsuit claiming that its voice-activated Siri assistant violated users’ privacy. A preliminary settlement was filed on Tuesday night in the Oakland, California federal court, and requires approval by U.S. District Judge Jeffrey White.

Mobile device owners complained that Apple routinely recorded their private conversations after they activated Siri unintentionally, and disclosed these conversations to third parties such as advertisers. Voice assistants typically react when people use “hot words” such as “Hey, Siri.”

Two plaintiffs said their mentions of Air Jordan sneakers and Olive Garden restaurants triggered ads for those products. Another said he got ads for a brand name surgical treatment after discussing it, he thought privately, with his doctor.

The class period runs from Sept. 17, 2014, to Dec. 31, 2024. It began when Siri incorporated the “Hey, Siri” feature that allegedly led to the unauthorized recordings.

Class members, estimated in the tens of millions, may receive up to $20 per Siri-enabled device, such as iPhones and Apple Watches.

Apple denied wrongdoing in agreeing to settle. The Cupertino, California-based company and its lawyers did not immediately respond to requests for comment on Thursday. Lawyers for the plaintiffs did not immediately respond to similar requests. They may seek up to $28.5 million in fees, plus $1.1 million for expenses, from the settlement fund.

The $95 million is about nine hours of profit for Apple, whose net income was $93.74 billion in its latest fiscal year.

A similar lawsuit on behalf of users of Google’s Voice Assistant is pending in the San Jose, California federal court, in the same district as the Oakland court. The plaintiffs are represented by the same law firms as in the Apple case.

The case is Lopez et al v. Apple Inc., U.S. District Court, Northern District of California, No. 19-04577.

Apple's settlement with consumers over Siri's alleged privacy violations highlights the importance of user privacy and the potential consequences for companies that fail to protect it. As technology continues to evolve, so too must the expectations and protections for user privacy. Apple's commitment to privacy has been a key selling point for its products, and any perceived breach of this trust could have long-lasting effects on the company's reputation and consumer trust in its privacy practices.
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