Apple offers $95 million USD to settle refurbished device lawsuit

Should the court approve the settlement, it will resolve a lawsuit accusing Apple of violating U.S. warranty laws with its AppleCare program

Apple logo on an iPhone

Apple reached a $95 million USD (roughly $119.3 million CAD) settlement that, pending court approval, will resolve a U.S. class-action lawsuit that accused the company of violating U.S. warranty laws.

At issue here is Apple’s AppleCare program, which replaced customers’ devices with refurbished parts. The lawsuit includes all U.S. residents who purchased an AppleCare Protection Plan or AppleCare+ on or after July 20th, 2012 and received a refurbished replacement device. Unfortunately, Canadians are not included in the lawsuit. That said, the lawsuit could set a precedent for other similar actions outside the U.S.

According to MacRumors, Apple’s Repair Terms and Conditions in the U.S. state that the company “may use parts or products that are new or refurbished and equivalent to new in performance and reliability.” However, the plaintiffs in the lawsuit claim that refurbished parts or devices are not “equivalent to new.” It’s worth noting that Apple’s Canadian terms say the same.

The class action will likely receive between $63.4 and $68.1 million USD (between $79.6 and $85.6 million CAD) after deducting attorney’s fees and other costs.

However, Apple denies that refurbished devices are inferior, saying it chose to settle considering the time and costs associated with a continued trial, according to court documents obtained by MacRumors.

Plaintiffs sought court approval on October 20th or as soon after that as the presiding judge can hear the matter.

Those interested can learn more about the class action here.

Source: MacRumors