Upcoming Payouts for $500 Million 'Batterygate' Claim by Apple to Commence Soon

Upcoming Payouts for $500 Million 'Batterygate' Claim by Apple to Commence Soon

Apple customers are finally set to receive their compensation, amounting to $65 each, as a result of a legal settlement that originated from a 2018 lawsuit. The lawsuit alleged that Apple deliberately implemented measures to slow down older iPhones, ostensibly nudging users towards upgrading to newer models. In March 2020, the company agreed to pay up to a total of $500 million to settle the claims. However, complications arose when two iPhone owners contested specific terms of the settlement, leading to an appeal process. The appeal reached the ninth Circuit Court of Appeals, which ultimately dismissed the appeal, as detailed in a court filing.

This marked the final step in a five-year legal journey, during which approximately 3 million claims were submitted since the initial lawsuit was filed in 2018. Apple acknowledged that it had intentionally slowed down the iOS software on older iPhones in 2017, arguing that this update was intended to prevent older batteries from causing devices to shut down unexpectedly. Apple emphasized that this measure was not designed to coerce customers into purchasing new batteries or upgrading to newer iPhone models.

In an official statement, Cotchett, Pitre and McCarthy, LLP, the legal firm representing the iPhone claimants, declared that the ninth Circuit's decision rejected Apple's attempt to dismiss the case, allowing the litigation to proceed. The allegations included violations of federal laws such as the Computer Fraud and Abuse Act, as well as California state laws including the Computer Data Access and Fraud Act, Unfair Competition Law, and Trespass to Property.

Apple's position, as articulated in a 2019 court filing, was that lithium-ion batteries naturally degrade over time, resulting in reduced effectiveness. However, the company did not inform customers about the iOS updates that allegedly led to slower phone performance. This situation came to the public's attention when users reported instances of iPhones shutting down despite displaying 30% battery remaining.

"This settlement is the culmination of years of exhaustive research and contentious legal proceedings," stated Mark C. Molumphy, a partner at Cotchett, Pitre and McCarthy, LLP. "We are deeply satisfied with the approval of this settlement, and in line with the tenth Circuit's directive, we can now expedite direct cash payments to the impacted Apple users," he added.

While Apple maintained its innocence throughout the case, the company agreed to compensate the plaintiffs with amounts ranging from $310 million to $500 million. The precise payout for each individual participant in the lawsuit depends on the number of claim approvals, and some claims are still undergoing review.

The affected iPhones encompassed models such as iPhone 6, 6 Plus, 6s Plus, and SE, all operating on iOS 10.2.1 systems prior to December 21, 2017. Additional devices included the iPhone 7 and 7 Plus, running on iOS 11.2 or later versions before the same date.

Reflecting on the situation, Tyson C. Redenbarger, a partner at Cotchett, Pitre and McCarthy, remarked, "This case held significant implications, intersecting privacy, consumer goods, and computer security regulations. The settlement provides meaningful relief for Apple consumers and, moving forward, will contribute to ensuring that customers receive full disclosure when prompted to update their products."

The "battery issue" controversy led to investigations in over 30 states, including Arizona, Arkansas, and Indiana, in 2020. In response, Arizona Attorney General Mark Brnovich emphasized the need for transparency from tech giants, stating, "Major tech companies must cease manipulating consumers and provide them with comprehensive information about their practices and products." Apple denied the allegations but ultimately settled a case filed by the State of California for $113 million.