Apple to pay $95 million to settle the Siri 'Listening' lawsuit: Drama explained

To resolve a legal complaint alleging that the privacy-conscious firm used Siri, its virtual assistant, to spy on users of the iPhone and other popular products, Apple has agreed to pay $95 million.

One of the most valuable companies in the world approved the settlement of a class-action lawsuit alleging that Siri, its virtual assistant, can inadvertently activate and then record portions of people's conversations without their knowledge.

Plaintiffs claimed that Apple then sent the recordings to third parties, infringing on the privacy of its consumers.

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What is the lawsuit filed against Apple?

A five-year-old lawsuit centered on claims that Apple secretly turned on Siri to record conversations through iPhones and other devices with the virtual assistant for over ten years.

The lawsuit would now be settled by the proposed settlement, which was filed Tuesday in a federal court in Oakland, California.

Even when users didn't try to use the trigger phrase "Hey, Siri" to activate the virtual assistant, the purported recordings nevertheless took place. According to the lawsuit, some of the recorded chats were subsequently given to advertisers in an effort to market their goods to customers who were more likely to be interested in them.

The claims of a spying Siri ran counter to Apple's longstanding pledge to safeguard consumer privacy, which CEO Tim Cook has frequently presented as an effort to uphold "a fundamental human right."

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How does this affect Apple users?

In the deal, which still needs to be approved by U.S. District Judge Jeffrey White, Apple is not admitting any wrongdoing. The case's attorneys have suggested holding a court hearing in Oakland on February 14 to go over the terms.

Tens of millions of customers who purchased iPhones and other Apple products between September 17, 2014, and the end of last year may submit claims if the settlement is accepted. Up to $20 could be given to each customer for each Siri-enabled device covered by the settlement; however, the amount paid may be lowered or raised based on the number of claims. Court filings anticipate that only 3 to 5 percent of eligible consumers will file claims.

The number of devices on which eligible consumers may seek compensation will be restricted to five.

A portion of the $705 billion in revenues that Apple has kept since September 2014 is represented by the settlement. It's also a small portion of the approximately $1.5 billion that the consumer lawyers had calculated Apple may have to pay the fine if the firm had been found to have violated privacy laws and eavesdropping, had the case proceeded to trial.

According to the court filings, the lawsuit's attorneys may request up to $29.6 million from the settlement money to pay for their fees and other costs.