Apple Inc to Pay $500M Settlement for Slowing Older iPhones

Apple Inc. has agreed to pay a $500-million fine following a lawsuit filed against the firm, accusing the iPhone maker of slowing down older models. The strategy reportedly urged users to purchase newer models or to improve their batteries as it slowed down over time. The settlement is slated to provide resolution to dozens of cases filed between 2017 to 2018, reports The Verge.

Customers who updated their devices accused Apple of throttling or slowing down the performance of their iPhones. Moreover, these customers maintained that the performance of their devices suffered and significantly change, urging them to purchase newer models or buy new batteries.

Based on the article released by Reuters, iPhone users were led to believe that their devices were broken or that these were nearing the end of its lifecycles.

Apple Inc to Pay $500M Settlement

The company is facing allegation over throttling older iPhone models, particularly phones from the iPhone 6 and 7 lineup. These include the 6, 6 Plus, 6s, 6s Plus, 7 Plus or SE and those devices that ran on iOS update 10.2.1, notes Tech Crunch. Meanwhile, iPhone 7 and 7 Plus systems that were updated to iOS 11.2 prior to December 21, 2017, were also being included in the said settlement.

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Lawyers for the said consumers demanded a “fair, reasonable, and adequate” settlement amounting to $25 per iPhone, with a maximum of $46 per device. However, the amount may be adjusted depending on the number of iPhones are eligible.

The $500 million settlement also covers lawyer’s fees amounting to approximately $90 million.

Meanwhile, lawyers of the corporation said that the problems stemmed from the customer’s level of usage, as well as the temperature changes that come with it. Engineers under the firm supposedly worked to issue a fix for these concerns.

In light of these heavy allegations, Apple Inc. has denied these actions and wrongdoings. The company’s decision to settle supposedly aims to reduce the costs that come with further trials and litigation.

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Prior to the $500-million class-action case, the company was also sued by the French government and authorities for $27 million for the same issue. In response, the company in question settled the amount and issued a statement of apology on its website.

According to Reuters, the class-action settlement was revealed to the public Friday night, February 28, 2020. However, it still required the approval of United States District Judge Edward of San Jose, California.

The case is still subject to approval and will take place on April 3, 2020.

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