The Cupertino, California-based company, Apple Inc. (Apple) has agreed to pay up to $500 million as a settlement for litigation against the misleading of American customers about its popular product, iPhones.
The lawsuit mentioned that the tech giant had slowed down older iPhones when it launched new models in a view to urging the existing customers to buy new products or replace batteries of their old iPhones. The leading US-based tech company had denied any wrongdoing and claimed that they agreed to a settlement as they wanted to avoid the burdens and costs of litigation.
On Friday night, February 28, 2020, a source revealed that the preliminary round of Apple’s settlement against the litigation was convened and the company had made a promise of the settlement payment. Meanwhile, the proposed payment has still required the approval from the US District Judge, Edward Davila in San Jose, California.
Under the preliminary settlement, Apple was liable to pay consumers $25 per iPhone as the minimum amount of damage compensation, which could be adjusted up depending on how many iPhones were affected by the company’s misconduct.
According to Reuters, “Friday’s settlement covers US owners of the iPhone 6, 6 Plus, 6s, 6s Plus, 7, 7Plus or SE that ran the iOS 10.2.1 or later operating system. It also covers U.S. owners of the iPhone 7 and 7Plus that ran iOS 11.2 or later before Dec. 21, 2017.”
Apple has sought that the payments of damage settlement per US old iPhone user should be made “considerable by any degree,” with a minimum total payment of $310 million and the company’s damages expert considered that $46 per iPhone would be the maximum possible damage settlement.
Consumers’ Lawyers Accepted the Settlement
In the lawsuit, consumers made complaints that their iPhones had slowed down after they installed the software updates sent from Apple and it was found that the company started sending the updates when it already launched its new iPhone models.
The US iPhones users were misled by the company and urged them to replace their phones or new batteries as it projected that the old phones were no longer effective or usable. Following an initial complaint about slow iPhones, Apple had already apologized and lowered the price for replacement batteries to $29 from $79.
Earlier, Apple explained that the slowdown problems were linked mainly to temperature changes and other issues, and the company insisted that its engineers were working on the issues. However, analysts referred to Apple’s move of slowing of iPhones as “throttling.”
The lawyers had earlier planned to seek up to $93 million, which was equal to 30% of $310 million, for the legal fees with an additional up to $1.5 million for expenses. As the tech company has agreed to pay a considerably good amount for the settlement, lawyers for the consumers described the settlement as “fair, reasonable, and adequate.”
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