Judge Preliminarily Approves iPad Data Plan Class Action Settlement

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A California federal judge has preliminarily approved a class action settlement in a long-running legal battle against Apple Inc. and AT&T Mobility LLC over the cancellation of unlimited iPad data plans. Under the proposed deal, Apple will pay $40 to everyone in the United States who purchased a 3-G-enabled iPad on or before June 7, 2010. In addition, owners who did not opt into AT&T’s data plan will receive a $20 monthly discount on a 5GB plan for up to one year.

The iPad data plan settlement was announced Friday, a day after U.S. District Judge Ronald M. Whyte granted preliminary approval to the deal. Plaintiffs said the class action settlement was the product of “extensive arms-length negotiations between the parties” and was reached with the assistance of two well-respected mediators who were brought in to resolve the litigation, which was started in 2010. [See our coverage of the first iPad class action lawsuit to be filed, Weisblatt v. Apple Inc., et al.]

Numerous iPad owners sued Apple and AT&T after the companies promoted unlimited 3G data plans for the iPads and then stopped offering the plans in favor of a tiered model, citing bandwidth complaints. Plaintiffs argued that they made their decision to purchase the 3G iPads based on the unlimited data plan promotion, and that the alleged bait-and-switch scheme caused them to overpay for the devices.

Judge Whyte consolidated the iPad class action lawsuits in 2011 into a master complaint, In Re: Apple and AT&T iPad Unlimited Data Plan Litigation. The class action settlement is subject to final approval, which will be decided at a February 7, 2014, Fairness Hearing.

Notices of the iPad unlimited data plan settlement will be mailed by November 5, 2013, according to Judge Whyte’s order. Class Members will have until December 20 to object and/or opt out, and will have until February 3, 2014, to submit a Claim Form to receive benefits.

A Settlement Administrator website has not been established yet, so instructions on how to file a claim are not available. Top Class Actions will update our readers as soon as claiming filing instructions are announced. Keep checking TopClassActions.com or sign up for our free weekly e-newsletter below to receive updates on this settlement and other class action lawsuit news. [Update 1: Claim filing instructions are now available in our Open Class Action Lawsuits section.]

The case is In Re: Apple and AT&T iPad Unlimited Data Plan Litigation, Case No. 10-cv-02553 RMW, U.S. District Court, Northern District of California.

UPDATE 2: The iPad unlimited data plan class action settlement was approved on March 11, 2014. Checks worth $40 were mailed to eligible claimants on July 18, 2014. Congratulations to our viewers who filed a valid claim and got PAID!