Apple Agrees to $95M iPhone, iPad AppleCare Warranty Settlement

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AppleCare Warranty Class Action Settlement Overview: 

• Who: A proposed multimillion dollar settlement has been proffered by the tech giant and class action plaintiffs. 
• Why: Smartphone and tablet buyers are seeking approval of a $95 million to end claims Apple replaced their broken devices with ones that were a lower quality under the AppleCare Warranty. 
• Where: If approved, the settlement will cover a nationwide Class. 

Apple customers who say the tech giant didn’t honor its AppleCare Warranty when it replaced broken iPhones and iPads with inferior “remanufactured” units are asking a judge to approve a $95 million settlement with the company.

Named plaintiffs Vicky Maldonado and Justin Carter filed a motion for preliminary approval of the Apple settlement in a California federal court Oct. 1. 

The settlement would benefit purchasers of an AppleCare Warranty who were given remanufactured replacement devices after July 20, 2012. 

In their original complaint filed Nov. 4, 2016, the plaintiffs alleged that Apple breached its AppleCare Warranty agreements with them and the Class by giving them remanufactured devices that were not “equivalent to new in performance and reliability.” 

AppleCare Warranty Class Action Settlement

 The $95 million Apple settlement would release the tech giant from the class action allegations — all of which it has denied. 

The total settlement represents about 13 to 25 percent of the estimated damages the Class has suffered, according to their own experts, the plaintiffs said. However, it was an “outstanding” deal considering going to trial could result in the Class getting nothing.

“In making this settlement, Class Counsel considered the risks of going to trial, including the possibility that a trial could result in a smaller or zero recovery for the Class, the time and resources that would be expended by both parties and the Court, and the possibility of delay caused by any appeal if Plaintiffs did prevail,” the motion says.

It said it was anticipated that the Class would recover a total of between $63.4M and $68.1M once administrative costs, incentive awards, and attorneys’ fees and costs have been deducted.

“While recovery at trial could have been higher, it also could have been much lower or zero,” they note. 

The named plaintiffs are seeking $12,500 to $15,000 each for taking part in the case.

The case comes as Apple faces another class action lawsuit filed in April, alleging it used software updates, including iOS 14.5, 14.5.1, and 14.6, to damage iPhone models 11, 12, 12 Pro, and 12 Pro Max. 

Did you get an Apple product replaced under warranty? Let us know your experience in the comments!

The customers are represented by Steve W. Berman, Robert B. Carey, Michella A. Kras and Renee F. Kennedy of Hagens Berman Sobol Shapiro LLP.

The Apple Warranty Class Action Lawsuit is Maldonado et al. v. Apple Inc. et al., Case No. 3:16-cv-04067, in the U.S. District Court for the Northern District of California.

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