$95M AppleCare Warranty iPhone Class Action Settlement Gets Preliminary Approval

AppleCare Warranty Class Action Settlement Overview: 

• Who: A federal judge has given the initial nod to a proposed $95 million class action settlement.   
• Why: The settlement will end a class action lawsuit that alleged Apple replaced their broken devices with ones that were of lower quality under the AppleCare Warranty.
• Where: The class action settlement is pending in California federal court.

AppleCare Warranty holders got one step closer to a $95 million class action settlement resolving consumers’ claims that Apple Inc. replaces broken iPhone and iPad devices with “remanufactured” units that are not as good as new ones.

U.S. District Judge William H. Orrick granted preliminary approval of the settlement would benefit purchasers of an AppleCare Warranty who were given remanufactured replacement devices after July 20, 2012. 

Class counsel said during a court hearing that he anticipates the settlement will cover upwards of 3.5 million refurbished Apple devices and that consumers will receive an estimated $23 per device.

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 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.

Did you get a subpar iPhone, iPad, or other device as a replacement under the AppleCare warranty? Let us know your experience in the comments!

The plaintiffs 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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