Apple agrees to a $ 95 million settlement under the AppleCare class

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Apple has agreed to pay $ 95 million to resolve a class action lawsuit accusing the company of replacing products covered by AppleCare and AppleCare + with refurbished devices, which is an alleged violation of the advertised rules.

In light of the complaint filed in 2016, the class action lawsuit seeks to replace Apple’s product covered by first-party warranties with refurbished equipment. The strategy is said to run counter to false advertising and unfair competition laws.

Apple’s documentation notes that AppleCare and AppleCare + services promise to repair iPhones or iPads that show hardware failure or accidental damage or replacement of a device that is “equivalent to a new one in terms of performance and reliability.” Prosecutors in this case allege that the refurbished or refurbished hardware does not meet Apple’s criteria.

The technical giant tried to overturn the case by claiming, among other things, that prosecutors had failed to prove that the reported problems were caused by used parts and that AppleCare’s statute “equivalent to new” does not mean “new”. These efforts failed and the class was certified in 2019.

Lawyers in this class further argued that Apple was illegally profiting by charging users premium prices for AppleCare and AppleCare +, but failed to fulfill that contract.

The parties failed to reach a settlement during the three mediations, but reached a solution after the fourth session held on June 30, 2021, under the chairmanship of retired Judge Rebecca Westerfield.

If approved by Presiding Judge William H. Orrick, the settlement envisions a $ 95 million mutual fund, which is expected to be reduced to between $ 63.4 million and $ 68.2 million after deducting administrative costs, incentive fees and attorney’s fees. That final amount is expected to cover 13% to 25% of the estimated damages awarded by plaintiff experts.

A request for a settlement was filed last Friday and he saw it MacRumors At Monday.

Class members are identified as individuals who purchased an AppleCare or AppleCare +, either directly or through the iPhone Upgrade Program, on or after July 20, 2012, and received a refurbished replacement device. The date of the cessation of classes was set on September 30, 2021.

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Naveen Kumar

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