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Apple to pay $95 million settlement in AppleCare-focused replacement device lawsuit

Last October, Apple agreed to pay $95 million to settle an ongoing class action lawsuit that accused the company of violating various U.S. laws and regulations by providing customers with refurbished replacement devices instead of new devices when repairs were required under AppleCare.

Administrators handling the case have updated the “Replacement Device Lawsuit” website with details as to the settlement, and have begun emailing customers who could be eligible for a payment once the settlement has been finalized.

Customers who purchased an ‌AppleCare‌ Protection Plan or ‌AppleCare‌+ for an iPhone or iPad between July 20, 2012 and September, 30, 2021 and who received a refurbished replacement device from Apple are included in the lawsuit.

Under Apple’s Repair Terms and Conditions within the United States, Apple might use “parts or products that are new or refurbished and equivalent to new in performance and reliability” when repairing or replacing a device. The lawsuit, which apparently held water, claimed that refurbished devices are “not equivalent to new in performance and reliability.”

The suit sought compensation for iPhone, iPad, and iPod owners who had purchased AppleCare or AppleCare+ coverage and were unhappy with the “inferior” refurbished devices they received as opposed to a device that works “like new.”

Apple chose to settle the lawsuit with a $95 million payment given that the suit had already spanned six years and would only result in additional legal fees. The company has admitted no wrong doing and “vigorously” denies that refurbished devices are inferior to new devices.

The $95 million settlement has already received preliminary approval, and Apple customers now have an option to exclude themselves from the settlement or object, which can be done on the lawsuit website. The website also includes a form for those who are interested in making sure that they’re included in the settlement.

A final fairness hearing is set to take place on April 27, 2022, after which class members can expect to begin receiving payments. Following attorneys’ fees and other expenses, the class members could receive somewhere between $63.4 million and $68.1 million, with that amount split up between those affected. 

Stay tuned for additional details as they become available.

Via MacRumors and replacementdevicelawsuit.com