Apple Agrees to Pay $53 Million to Settle iPhone Warranty Lawsuit

Apple refused to fix several thousand iPhones, so customers filed a class action lawsuit. The company has agreed to pay $53 million.

Apple has been involved in another lawsuit where the company was accused of not honoring warranties on iPhones and iPod touches. Photo: Oli Merrick/Flickr

Apple is agreeing to pay $53 million to settle a class action accusing the company of failing to honor warranties on iPhones and iPod Touches, according to an agreement obtained today by Wired.

The agreement to pay the said amount of money will be submitted to the San Francisco federal court in the coming weeks.

The settlement is intended to reimburse potentially hundreds of thousands of iPhone and iPod touch consumers who were refused service by Apple.

Apple was unwilling to repair or replace their faulty phones under the one-year standard, or two-year extended warranty. Noreen Krall, Apple’s chief litigation counsel, signed the agreement on Wednesday.

Apple hasn’t actually admitted to any wrongdoing in the settlement, which still needs a judge’s approval.

Apple chief litigation counsel Noreen Krall signed the agreement Wednesday. Apple admits no wrongdoing in the settlement, which needs a judge’s approval, writes Wired.

According to several lawsuits combined in San Francisco, 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, reports the Wired.

Every device has a piece of liquid contact indicator tape placed at the bottom of its headphone jack, which turns from white to pink in the presence of water.

So owners of the original iPhone, iPhone 3G, iPhone 3GS, and the first-, second- and third-generation iPod touches that were refused service over water exposure could be eligible for a payout. The payouts are expected to be around $200 and could be less or more depending on the number of claims submitted.

Under the settlement terms, Apple will pay out between $105 to $300 depending on the device and amount of on-board storage, with the amounts reflecting the average cost of repair. The document states class members can double the payout depending on how many times they sought warranty coverage.

There has been no official word on this from the Cupertino tech giant.

Lead counsel for the plaintiffs, Jeffrey Fazio, declined to be quoted on the deal because the settlement is not public. Apple did not immediately respond to a telephone inquiry late Thursday.

Also recently it has been reported that Apple may produce television set product, claiming that the TV could launch later this year.

Actually, Topeka Capital Markets analyst Brian White noted that Apple’s upcoming HDTV will include “a major innovation that will revolutionize the TV experience.”

Apple’s new gadget will come with a tablet the same size as an iPad. Users will be able to send videos from the iTV to the tablet to continue watching a programme as they move around the house.

White also believes that Apple’s “iWatch” will play into Apple’s television ecosystem, complementing the iRing to support interactive TV services and phone calls.

White claims that the basic iTV package would include one such mini iTV, with customers able to add on additional screens up to a maximum of four.

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