It seems like just about everyone in Connecticut has a smartphone these days, and Apple iPhones are a popular brand. Apple Inc. continuously releases new versions of its iPhones that have many innovative features that may be attractive to consumers. However, Apple Inc. has settled a class-action claim that it slowed down older models of iPhones when new models were released, in an effort to induce consumers into buying the new model or a new battery for their phone.
Apple Inc., as part of the $500 million settlement, will pay iPhone owners around $25, although this number may increase or decrease based on the number of eligible iPhones. As part of the settlement, Apple Inc. will pay out at least $310 million.
Apple Inc. claims it did nothing wrong. However, the company decided to settle the claim against them in order to avoid litigation, which would be very costly. In the claim against Apple Inc., iPhone owners contend that when they updated their phone’s software, the phone’s performance went down, misleading them into believing they either needed to replace their phone or buy a new battery for their phone.
This business litigation serves as a good example of consumers pursuing a legal claim against a business. Sometimes legal claims against businesses can be settled, but other times litigation is the only way a business can protect its interests. Businesses facing litigation will want to seek the professional advice needed to determine whether a settlement is possible or whether the claim against them should be litigated.