Apple Paying $53 Million for iPhone and iPod Touch Warranty Suit

Apple Headquarters at Infinite Loop, Cupertino, California | Wikipedia

Apple Headquarters at Infinite Loop, Cupertino, California | Wikipedia

It was finally agreed that Apple will pay $53 million to settle a class-action suit, which has something to do with iPhone and iPod Touch warranties. That is according to last Tuesday’s joint filing in the US District Court for the Northern District of California. As it turns out, there are more than 153,000 owners of the said devices that were denied of warranty coverage when Apple used to carry out their “liquid damage policy”.

The ‘Liquid Damage Policy’ Issues

With the execution of LDP, Apple had installed a Liquid Submersion Indicator, which was manufactured by 3M, on their previous iPhone and iPod Touch devices. It has a color indicator that changes from white to pink to red, which proves whether a device had been damaged by a liquid. This would make the warranty void in line with provisions that excluded coverage.

The Cupertino-based company changed their Liquid Damage Policy for the iPhone around November 2009, while it continued for the iPod Touch until May 2010.

On the other hand, the plaintiffs pointed out that the change in color of LSIs is just an indication that the device may have been exposed to liquid, but not necessarily damaged. It is supported by 3M’s testing and product instructions, saying that the color pink is an indication of humidity and not a direct contact with the liquid.

Meanwhile, the settlement still requires the approval of the court. Customers whose warranty claims were denied for their iPhone and iPod Touch before Dec. 31, 2009 and June 30, 2010 respectively are eligible for the settlement funds. Moreover, up to 30 percent of the proceeds may be awarded as attorneys’ fees and reimbursement of the settlement process.

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