Apple, $AAPL, will soon pay out between $310 million and $500 million to millions of users who had their battery weakened by software updates
After a prolonged legal process, Apple users are now receiving their $65 compensation as a result of a class action lawsuit dating back to 2018. The lawsuit accused Apple of intentionally slowing down iPhones to incentivize consumers to upgrade to newer models. Apple reached an agreement in March 2020 to pay a settlement of up to $500 million to resolve the case. However, the settlement faced an obstacle when two iPhone owners appealed against certain terms of the agreement. The appeal was taken to the 9th Circuit Court of Appeals, but it was ultimately denied, as confirmed by a court filing.
This decision marked the final hurdle in the five-year-long legal battle, during which approximately three million claims were submitted since the class action lawsuit was initiated in 2018. In 2017, Apple acknowledged intentionally slowing down the iOS software on older iPhones, explaining that the software update aimed to prevent older batteries from causing random device shutdowns. Apple maintained that this action was not intended to compel consumers to purchase new batteries or upgrade to newer iPhone models.
Cotchett, Pitre & McCarthy, LLP, the law firm representing iPhone claimants, stated in a press release that the 9th circuit had rejected Apple's motion to dismiss the case, enabling the legal proceedings to proceed. The claims against Apple included allegations of violations of the federal Computer Fraud and Abuse Act, California's Computer Data Access and Fraud Act, California's Unfair Competition Law, and Trespass to Chattels.