Apple has agreed to pay $53 million to settle a class action accusing the company of failing to honor warranties on iPhones and iPod Touches. The settlement provides cash payouts to potentially hundreds of thousands of iPhone and iPod Touch consumers who found Apple unwilling to repair or replace their faulty phones under Apple’s one-year standard or a two-year extended warranty. Apple chief litigation counsel Noreen Krall signed the agreement for the company. The settlement, which comes in a lawsuit filed in a San Francisco federal court, will need court approval.
According to allegations in several lawsuits combined in the San Francisco court, no matter what the problem, Apple refused to honor warranties if a white indicator tape embedded in the phone near the headphone or charging portals had turned pink or red. However, the tape’s maker, 3M, said humidity, and not water contact, could have caused the color to at least turn pink. Affected devices include the original iPhone, iPhone 3G, iPhone 3GS, and the first-, second and third-generation iPod Touch. Payouts are around $200 and could be less or double based on the number of claims submitted. Jeffrey Fazio, who is with the firm Fazio Micheletti, located in San Roman, California, represents the Plaintiffs in the case. He did a very good job in a most interesting case.
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