After years of legal proceedings, Apple (Nasdaq: AAPL) is poised to distribute settlement payouts to iPhone users who filed claims in a class-action lawsuit concerning alleged intentional performance slowdowns caused by software updates.
The tech giant had agreed to pay between $310 million and $500 million to settle claims that it intentionally reduced the performance of certain iPhone models through a software update in order to extend battery life.
The settlement, which was reached in 2020, had been delayed due to various legal procedures and appeals. However, a recent development saw the dismissal of an appeal challenging the lawsuit, paving the way for the distribution of payments to impacted consumers. Approximately 3 million people who filed claims are expected to receive payouts averaging about $65.
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The lawsuit alleged that iPhones experienced unexpected shutdowns despite having sufficient battery life, attributing the issue to the hardware’s inability to keep up with the demands of new software updates. The plaintiffs claimed that Apple deliberately slowed down the performance of affected phones through an update to reduce the number of shutdowns.
Apple has consistently denied any wrongdoing but agreed to settle the case to avoid protracted and costly litigation.
This settlement applies to US owners of iPhone 6, 6 Plus, 6s, 6s Plus, or SE devices that ran the iOS 10.2.1 software (or a later version) before Dec. 21, 2017, as well as owners of iPhone 7 or 7 Plus that had iOS 11.2 or later before Dec. 21, 2017.
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