Apple has agreed to pay $95 million to settle a five-year-old lawsuit alleging that its Siri virtual assistant secretly recorded iPhone users' conversations without their consent. The settlement, filed in Oakland, California federal court, resolves claims that Apple surreptitiously activated Siri for recording, even when users did not verbally trigger the assistant.

This practice occurred for over a decade, according to the lawsuit. The settlement proposes a payout of up to $20 per Siri-equipped device for eligible consumers, though individual payments may vary based on claim volume.

The settlement does not acknowledge wrongdoing by Apple. A February 14th court hearing is scheduled to review the terms. Although estimated at $1.5 billion (pre-settlement), the potential liability was significantly reduced with the settlement.

A small percentage of affected customers (3-5%) are expected to pursue claims. Each consumer will be limited to seeking compensation for up to five devices.

The settlement represents a fraction of Apple's profits during the relevant period, while still covering the lawyers' fees and expenses (potentially $29.6 million). The amount, while significant to the plaintiffs, is a fraction of the potential liability had the case proceeded to trial.

This resolution avoids a protracted legal battle and addresses allegations of a privacy breach related to Siri's functionality.