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Apple To Pay $53M Settlement In iPhone, iPod Touch Warranty Class Action Suit

Apple has reportedly agreed to settle a class action suit filed against it regarding warranty issues of its iPhone and iPod touch products. The company is said to pay a total of $53 million in settlement for its inadequacy to honor its warranty on the said devices.

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The settlement provides cash payouts to possibly hundreds of thousands of consumers who are affected by Apple’s refusal to honor the warranty of their iPhone and iPod Touch devices that are still covered by the one year warranty period or with the two year extended warranty.

The class action suit dates back to 2010 when multiple cases, state and federal, were filed against Apple. All of the cases were about the company’s refusal to fix defective iPhone and iPod Touch devices that were under its warranty period. The cases were then combined into one large class action suit which is currently pending under the San Francisco court.

Apple’s warranty covers the device from any defects as long as it isn’t “damage caused by accident, abuse, misuse, liquid spill or submersion, flood, fire, earthquake, or other external causes.” The company has a method to check on whether the device has been submerged in water which they call as the “Liquid Submersion Indicator” This indicator turns pink if an iPhone or iPod has been submerged in water.  Some of the plaintiffs who brought their products in which were under warranty were denied service since the indicators turned pink.

The problem with the Liquid Submersion Indicator that Apple is using is that they turn pink even if the device has not been submerged in water. The original complaint filed against the company states that “External Liquid Submersion Indicators can be triggered by other types of moisture that should not cause damage in any event—such as a palm that becomes sweaty after a work-out, and other small amounts of moisture to which the devices would be exposed during ordinary, foreseeable use.”

Apple has reportedly agreed to pay up the sum of $53 million but has not admitted that it has done anything wrong. The company has up to 15 days to deposit the $53 million once the court approves the settlement. The devices covered in this case are the iPhone 3G, Phone 3GS, iPod touch first generation, iPod touch second generation and the iPod touch third generation.

via wired

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