Apple pay $53million to settle iPhone warranty lawsuit

Apple have agreed to pay out $53 million to settle a class action accusing the company of not honouring the warranty terms on iPhones and iPod Touches. The information was published by Wired.

The settlement will deliver cash handouts to hundreds of thousands of iPhone and iPod Touch consumers who found Apple were unwilling to repair or replace their faulty phones under Apple's one year standard, or a two year extended warranty. Apple's litigation counsel Noreen Krall signed the agreement on Wednesday.

Wired say “Apple admits no wrongdoing in the settlement, which needs a judge’s approval.”

Several lawsuits against Apple in San Francisco say that Apple were unwilling to honour their warranties if a white indicator tape embedded in the phone near the headphone or charging portals had  turned pink or red. The Tape's maker, 3M said humidity and not water could have caused the colour to turn pink.

The original iPhone, iPhone 3G, iPhone 3GS and the first, second and third generation iPod Touch products were affected. Wired say “Payouts are around $200 and could be less or double based on the number of claims submitted.

Lead counsel for the plaintiffs, Jeffrey Fazio, declined to be quoted on the deal because the settlement is not public. Apple did not immediately respond to a telephone inquiry late Thursday.”

Kitguru says: Another embarrassing situation for Apple.

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