Apple is going to be paying $53 million to settle a class-action lawsuit in order to settle iPhone and iPod Touch warranties. There was a filing submitted to the U.S. District Court for the Northern District of California on Tuesday that said Apple will be paying up to $300 for customers that were denied warranties for their products, according to Bloomberg.
The lawsuit filed against Apple said that the company used flawed liquid submersion indicators to find out whether or not to grant a customer warranty on an iPhone or iPod Touch. Liquid Submersion Indicators (LSIs) were installed on Apple iPhone and iPod Touch products to test whether or not the device has made contact with water. If the device fell in water, the color on the LSI would change. Apple believed that this was proof enough of extensive water damage, but lawyers working for consumers said that the change in color showed exposure to liquid — not necessary damage. That color simply showed that there was a problem in the device that allowed exposure, not necessarily an issue that the customer was potentially trying to have repaired.
Lawyers in the case said that the indicators may have also falsely suggest that Apple’s device was “abused” simply by ordinary use. The measure change was based on humidity. If an iPhone or iPod Touch was submerged in water, then it is not covered by the warranty protection. Several Apple consumers were unfairly denied repairs or replacements without reliable evidence of liquid damage and abuse.
Apple said that the LSIs are reliable, but decided to settle for $53 million. Consumers that had warranty claims dismissed before December 31, 2009 based on LSI issues are eligible for compensation. This is applicable for iPod Touches before June 2010 also. There are over 150,000 customers that can claim compensation. The settlement requires approval from the court.