Apple Reportedly Settles IPhone Warranty Suit For $53M
Apple, the hardware giant, has agreed to shell out $53 million to settle a class action lawsuit originally filed against the company in 2010, according to Wired. The suit involved Apple vs. User warranty disputes.
Apparently, thousands of owners of the original iPhone, iPhone 3G, iPhone 3GS, or the first three generations of the iPod touch who unsuccessfully haggled with Apple to get their defective device replaced or repaired under warranty can submit claims in the suit. Payouts could be around $200 depending on how many people submit claims, according to Wired.
For these devices, Apple had one-year standard and two-year extended warranties but in many cases the company claimed it was the users who damaged their iPhones and iPod Touches.
If an indicator placed inside the device had changed from white to pink or red, it proved there was water damage. However, 3M, which made the indicators, later said that heat could also cause color change.
The settlement will be filed in San Francisco Federal court in the next few weeks. Originally there were dozens of cases involving this issue but they were all combined into one class action suit.
In agreeing to settle, Apple does not have to admit wrongdoing. Hopefully, users in developing countries in Africa will someday follow in this footstep when warranty on new products are not handled appropriately by the company involved.