In April 2022, the court granted final approval to a $95 million settlement to resolve claims that Apple violated consumer laws by charging its customers premium prices for protection and replacement plans, known widely as AppleCare/AppleCare+. Consumers were allegedly led to believe that the program offered comparable replacement devices, but were instead given refurbished, lesser-valued products.
WHAT WAS THE LAWSUIT ABOUT?
An investigation revealed that Apple allegedly violated consumer laws, illegally charging customers premium prices for what they believed to be new replacement devices under its AppleCare/AppleCare+ programs. According to the lawsuit, those who purchased an iPhone or iPad along with AppleCare or AppleCare+ and made a claim for a new (or replacement) device likely did not receive what Apple promised. Device replacements were allegedly made with inferior, refurbished or used parts.
ABOUT THE ALLEGED FRAUD
When Apple sells iPhones, iPads and iPhones to the general public, it also offers protection plans known as AppleCare and AppleCare+ under which, if a consumer’s device breaks, Apple promises to provide the consumer with a device “equivalent to new in performance and reliability.” The protection plans purport to provide consumers with new devices, when in fact Apple sends consumers devices made of refurbished parts, failing to uphold its promise of iPhone and iPad replacements that are equivalent to new in performance and reliability.
The lawsuit sought reimbursement and restitution for consumers. Hagens Berman believes that those who paid premium prices for Apple's AppleCare plans (up to $129) and additional cost for device replacement (upwards of $99) should have received the new devices that Apple promised, not refurbished products passed off as adequate replacements.
CASE TIMELINE
U.S. District Judge William H. Orrick granted preliminary approval to a $95 million class-action settlement resolving consumer claims that Apple failed to honor its AppleCare warranties. Attorneys for the class estimate the settlement will cover between 3.5 and 4 million refurbished Apple devices.
Notices of the settlement will be emailed to class members starting Jan. 3, 2022. The final approval hearing is set for Apr. 27, 2022.
Full settlement details and deadlines can be found at replacementdevicelawsuit.com, including information regarding how to make a claim if you believe you are part of the class. Class members will also receive this information via emailed notice.
