Michael L. Feinstein, P.A.

Apple comes to settlement over class action litigation

When a Florida company faces numerous complaints from clients or customers, it often has multiple options for handling those complaints. It may be able to address the issue in-house and directly with customers, or it may have to contend with class action litigation. Of course, even if a situation goes that far, companies could still choose to reach a settlement.

Coming to a settlement is recently the decision Apple made in relation to class action lawsuits that were filed in 2017 and 2018. The suits stemmed from claims that Apple purposefully slowed down the operating systems in older iPhones without informing users of the feature. The company claimed that the slowdown was to help prevent performance issues by reducing battery stress. However, because the company did not inform users, many thought that their phones were slowing due to age and bought new devices.

In the recent settlement, Apple agreed to pay $25 to current and former owners of the iPhones affected by the throttle, namely those in the iPhone 6 and iPhone 7 categories. For class members directly named in the suit, payouts of $1,500 or $3,500 will be issued to them. In total, the settlement will come to a minimum of $310 million and a capped amount of $500 million.

Though it can be difficult to make the decision to settle class action litigation, it can sometimes be the wisest route to take. If Florida business owners are considering settlements, they may want to thoroughly review what this route could mean for their companies. Discussing all available options with their legal counsel is prudent.

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