Apple agrees to pay $95 million to settle Siri eavesdropping lawsuit

Apple Inc. has agreed to pay $95 million to settle a five-year-long class action lawsuit that accused the company of using its virtual assistant Siri to eavesdrop on users and share related recordings with third parties.

The privacy class action lawsuit, which has been ongoing for five years, alleged that Apple’s virtual assistant Siri would listen to users’ conversations without their consent, violating their privacy rights.

According to the lawsuit, some recorded conversations were later shared with advertisers, allowing them to target users who were more likely to be interested in specific products and services.

Two plaintiffs claimed that after mentioning Nike Air Jordan sneakers and Olive Garden restaurant in their conversations, relevant advertisements started appearing on their phones. Another individual reported receiving advertisements for surgical treatments after discussing treatment options with a doctor.

The proposed settlement agreement was submitted to the federal court in Oakland, California on Tuesday, December 31. Apple did not admit to any wrongdoing in the settlement agreement but agreed to pay $95 million in settlement.

The agreement still needs approval from U.S. District Judge Jeffrey White. The attorneys for the case have proposed a hearing in Oakland on February 14 to review the terms of the settlement.

If the settlement agreement is approved, tens of millions of consumers who owned an iPhone or other Apple devices from September 17, 2014, to the end of last year can file claims. Each device equipped with Siri could be eligible for up to $20 in compensation, with the amount varying based on the number of claims filed.

According to court documents, it is estimated that only 3% to 5% of eligible consumers will file claims.

Eligible consumers can seek compensation for a maximum of five devices.

Since September 2014, Apple has made a profit of $705 billion, with the settlement amount being just a small portion of it.

Attorneys representing consumers estimate that if the case were to go to trial and Apple were found to have violated eavesdropping and other privacy laws, the company may be required to pay around $1.5 billion in damages.

Court documents reveal that the legal team bringing the lawsuit forward could receive up to $29.6 million in fees from the settlement amount, potentially further reducing the compensation available to users.