Apple Inc. agreed to pay $53 million to settle a class-action suit associated with warranties for iPhones and iPods. The money is to be distributed to approximately 153,000 customers who had been denied warranty coverage under an Apple policy associated with handling water damage.
The lawsuit suit stemmed from technology Apple built into its iPhones and some iPod music players that was designed to indicate when the devices had come into contact with liquid, such as through submersion or a large spill.
According to the complaint, Apple had a “liquid damage policy,” which required Apple’s employees to deny warranty coverage for any device if the liquid indicator had been triggered by changing color. The plaintiffs alleged that the indicators, which were manufactured by 3M Co., could be triggered by moisture or humidity during ordinary use.