iPhone slowdown: Settlement reached in throttling class action

iPhone users who owned an iPhone 6, 6 Plus, 6S, 6S Plus, 7, 7 Plus or SE device bought before December 21, 2017, may be able to file to receive part of a $500 million settlement of a class action lawsuit filed against Apple..

The lawsuit claimed that Apple utilized software updates to diminish the operating speed and efficiency of older iPhones. The company admitted in 2017 that software updates had resulted in slower performance on specific phones, but claimed it was due to concerns over older lithium-ion batteries, not an effort to pressure customers into updating to newer versions of the phone. After the acknowledgment, Apple lowered the price on battery replacements for older phones to $79. They further reduced the price to $29 in January 2018.

As part of the settlement agreement, which is waiting for court approval from U.S. District Judge Edward Davila in California, expected to be issued by April 3.

In settlement documents, released Feb. 28, Apple maintains their innocence in any wrongdoing, but said they agreed to the settlement to avoid further litigation costs.

Apple will pay owners of specified iPhone models approximately $25. The minimum total payout designated by the settlement agreement is $310 million, and it is capped at $500 million. The actual amount each phone owner will receive will depend on the number of claims filed, as well as the legal fees – expected to be around $90 million - and expenses – expected to be up to $1.5 million - approved by the judge on April 3 – those amounts will be figured into the total settlement cap, according to the settlement documents provided Friday by the US District Court in San Jose, CA. iPhone owners who were named in the original lawsuit will be given priority in the distribution of funds, with new filers awarded a share of any funds left – an amount that could be negligible if there are a large number of late filers.

Instructions on how to file a claim under the settlement will be issued following an approval of the settlement by Davila.


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