Wired reports that the Cupertino, California manufacturer, Apple, has agreed to pay $53 million for the settlement of their iPhone warranty lawsuit. The company was accused of failing to fulfill the provisions of the iPhone and iPod Touch warranties and is, therefore, willing to make up for consumers’ losses by offering them cash payouts.
Apple has been involved in many legal actions in the past years; this time, however, the smartphone giant is accused of not honoring warranties for two of its most popular products, iPhone and iPod Touch. Much to consumers’ surprise, the company agreed to put an end to the legal battle. As a result, the iPhone maker will pay $53 million in cash payouts to all the users who have been deprived of the warranty services they were supposed to receive for their broken Apple devices.
The lawsuit was filed at a federal court in San Francisco, where the settlement will be signed in the following weeks. Based on the information contained in the filed papers, there could be hundreds of thousands of customers who must receive money from the iPhone maker. Apple chief litigation counsel Noreen Krall announced on Wednesday that he is willing to sign the settlement.
The one-year and two-year warranties provided by Apple read that stores are supposed to honor warranties for any flaw, except when the white indicator tape embedded in the phone near the headphone or charging portals had turned pink or red. So far, it was believed that the color of the white indicator gets altered in contact with water, but later results have shown that higher levels of humidity may also trigger the color modification. Given this new finding, Apple is constrained to pay for the losses that the iPhone users have registered.
Users will receive approximately $200 depending on the number of claims they submitted. iPhone, iPhone 3G, iPhone 3GS, and the first-, second and third-generation iPod Touch are the devices that have been most talked about during the San Francisco process. Apple refused to make any comments in relation to the settlement because the agreement is not public.