Apple To Pay $53M In iPhone Warranty Suit

Updated on

Apple Inc. (NASDAQ:AAPL) recently filed a preliminary class settlement agreement for $53 million in the Santa Clara County Superior Court. This could potentially allow customers with damaged iPhones and iPod Touches to receive $200 warranties. This would please customers who reported that their devices should have been covered under the warranty however were turned down because of the liquid indicators on the device.

Apple To Pay $53M In iPhone Warranty Suit

Apple’s Policy Not Appealing To All

One small group of class representatives were not happy—Apple Inc. (NASDAQ:AAPL)’s policy regarding liquid damages prior to December 2009  refused to cover iPhones or iPod touches which had a dock connector or headphone jack turn red or pink. These colors indicate that the device was in contact with water. For those who brought in their devices for repair but were denied are now able to go to a website for class members right after the judicial approval.

The lawyer who represented the class representatives is happy with the news. He said, “They’re both delighted, as are we. We think it’s a very good settlement. We think people will get real money and real relief.”

Judicial approval is expected to arrive within thirty days. Apple Inc. (NASDAQ:AAPL) and their lawyers have yet to release a statement on their thoughts regarding this particular case. During the settlement, Apple Inc. (NASDAQ:AAPL) claimed they had no wrong-doing.

This class action was first built in 2010 when a lawsuit was filed by Charlene Gallion in the United States District Court against Apple Inc. (NASDAQ:AAPL). She and her group of lawyers claimed to represent all the iPhones and iPod Touch devices in the U.S.  The liquid damage policy changed for the iPhone in December 2009 and the iPod Touch on June 2010.

Settlement Positive For Apple

This settlement should also prove positive for Apple Inc. (NASDAQ:AAPL) as it provides closure to one courtroom battle. Hopefully, this will free up their time to focus on creating more innovative products.

Leave a Comment