Second Payment Emails for Refurbished Apple Device Class Action Lawsuit Going Out Tomorrow

[MacRumors]

A second wave of Apple customers eligible for a payment under a $95 million Apple refurbished device lawsuit are today receiving emails letting them know that the funds will be sent out starting tomorrow.

As Settlement Administrator for the matter, we're sending you this courtesy email to inform you that by January 9, 2024, you will receive a payment notification email that contains a link to claim your payment electronically. Once you receive that email, you will have until May 15, 2024, to claim your payment.

Back in 2021, Apple agreed to pay $95 million to settle an AppleCare-related lawsuit that accused the company of violating U.S. law by providing customers with refurbished replacement devices instead of new devices when AppleCare repairs were required.

The settlement was approved in April 2022, and Apple sent out some payments starting in August 2022, but a new wave of emails went out to customers today. The lawsuit covered iPhones and iPads purchased between July 20, 2012 and September, 30, 2021 and replaced with a refurbished device.

A second wave of payments that are being sent out to disburse remaining funds after the first payments were received. Only 31 percent of those eligible claimed the first payment, leaving money for a second payment.

While Apple paid $95 million to settle the lawsuit, the company admitted no wrongdoing and has denied that refurbished devices are inferior to new devices.

Article Link: Second Payment Emails for Refurbished Apple Device Class Action Lawsuit Going Out Tomorrow

 

[WiiDSmoker]

Before some people come in and say that refurbished is better than new from Apple; it still ain’t new. Glad Apple paying up.

 

[RumorConsumer]

This is so disgusting to me. And wasteful. Refurbs are fine especially through Apple's process. They care so incredibly much about making sure each customer only comes in once for each issue it's just so gross to insist on a new device for one that is having an issue. Apple's refurbs are cosmetically perfect. Flawless. To insist on new... throw up in my mouth.

 

[DMG35]

I never really understood how Apple thought this was ok. You have a customer that pays for a warranty. Their device breaks. The warranty says they will be given a new device and then they are given an already used and repaired device? It just seems wrong.

If I'm misunderstanding how this worked someone let me know.

 

[DMG35]

This is so disgusting to me. And wasteful. Refurbs are fine especially through Apple's process. They care so incredibly much about making sure each customer only comes in once for each issue it's just so gross to insist on a new device for one that is having an issue. Apple's refurbs are cosmetically perfect. Flawless. To insist on new... throw up in my mouth.

I don't know, shouldn't you be given a new device if that's what you were promised when you bought the warranty?

 

[Sorinut]

I don't know, shouldn't you be given a new device if that's what you were promised when you bought the warranty?

I think so, if that is what the wordage or law states, which apparently it did. Otherwise, it's simply a contract violation on Apple's part, regardless of how nice the refurb is.

 

[mrochester]

I never really understood how Apple thought this was ok. You have a customer that pays for a warranty. Their device breaks. The warranty says they will be given a new device and then they are given an already used and repaired device? It just seems wrong.

If I'm misunderstanding how this worked someone let me know.

The warranty terms don’t state the customer will get a new device.

 

[Sorinut]

The warranty terms don’t state the customer will get a new device.

The lawsuit stated that Apple was violating the Magnusson-Moss Warranty Act and Song-Beverly Consumer Warranty Act.

Since it was settled out of court, there was no official decision if they did violate those federal acts or not.

 

[ignatius345]

Haha, just got an email saying I'll be getting like $26 tomorrow. I couldn't remember which "-gate" it was, but I have a feeling Apple will survive.

 

[mrochester]

The lawsuit stated that Apple was violating the Magnusson-Moss Warranty Act and Song-Beverly Consumer Warranty Act.

Since it was settled out of court, there was no official decision if they did violate those federal acts or not.

I don’t think either of those two acts state that devices repaired under warranty must be replaced with new devices; that level of detail would be within the terms and conditions of the warranty supplier.

Apple still replaces warranted devices with refurbished units so I guess this is just a payment to make these people go away.

 

[webkit]

I never really understood how Apple thought this was ok. You have a customer that pays for a warranty. Their device breaks. The warranty says they will be given a new device and then they are given an already used and repaired device? It just seems wrong.

If I'm misunderstanding how this worked someone let me know.

I don't think customers were necessarily promised new but rather a replacement that was "new OR equivalent to new in performance and reliability." The complaint was that refurbished is not "equivalent to new" in performance and reliability.

 

[mrochester]

I don't think customers were necessarily promised new but rather a replacement that was "new OR equivalent to new in performance and reliability." The complaint was that refurbished is not "equivalent to new" in performance and reliability.

That’s exactly it. These people don’t believe Apple’s refurbished devices are equivalent to new devices in performance and reliability and hence they have sought damages for whatever harm they suffered due to having a refurbished replacement vs new replacement. Apple don’t believe they have done any wrong and continue this practice.

 

[LeeW]

I'll be getting like $26 tomorrow.

Just think of all the $26 per second the lawyers got paid to get you that $26.

 

[mrochester]

Just think of all the $26 per second the lawyers got paid to get you that $26.

It would be interesting to see how this sort of litigation affects the price we pay for our devices. All of these legal costs have to be built into the products we buy.

 

[LeeW]

It would be interesting to see how this sort of litigation affects the price we pay for our devices. All of these legal costs have to be built into the products we buy.

Apple has sued plenty of companies and won. I guess there is a balance or close to it.

 

[mrochester]

Apple has sued plenty of companies and won. I guess there is a balance or close to it.

That’s true, but from Apple’s perspective the money they win is to pay for whatever damage they suffered, so is already accounted for in that sense. The money that Apple has to pay out for legal costs will be built into the products we buy.

It’s a form of insurance really. We all pay into the legal pot when we buy a device but only some people get money back out of it again. It narks paying customers off when they see frivolous claims being paid though.

 

[kagharaht]

I never realized they were refurbished. I've had an iPhone 5 and iPhone 6S replaced because I damaged it. AppleCare covered and it was replaced. They worked perfectly fine and then I upgraded from there. For refurbished they worked perfectly fine.

 

[Dstopsie]

Haha, just got an email saying I'll be getting like $26 tomorrow. I couldn't remember which "-gate" it was, but I have a feeling Apple will survive.

I got the same email. It’s $26.18

 

[GimmeDatApple]

Haha, just got an email saying I'll be getting like $26 tomorrow. I couldn't remember which "-gate" it was, but I have a feeling Apple will survive.

That's strange, it's supposed to be $92.17 per claim. I manage over 11,000 enterprise devices and we are expecting to get $5,253.69 for all the claims we made.

 

[NervousFish2]

Just got an email saying i have $78.54 coming to me.

 

[ignatius345]

That's strange, it's supposed to be $92.17 per claim. I manage over 11,000 enterprise devices and we are expecting to get $5,253.69 for all the claims we made.

Just got an email saying i have $78.54 coming to me.

I wonder if it's pro-rated depending on what device you had replaced? I believe mine was probably an iPhone, though I couldn't tell you which generation.

 

[NervousFish2]

I wonder if it's pro-rated depending on what device you had replaced? I believe mine was probably an iPhone, though I couldn't tell you which generation.

Not sure, but I believe I had two devices effected in the time period. One iPhone and one iPad.

 

[mrochester]

Not sure, but I believe I had two devices effected in the time period. One iPhone and one iPad.

Looks like you had 3 since you are getting 3 x 26.18

 

[GimmeDatApple]

I wonder if it's pro-rated depending on what device you had replaced? I believe mine was probably an iPhone, though I couldn't tell you which generation.

Nothing I can see for device-specific payout amounts. From the Settlement Summary on the settlement website:

Apple will provide a cash payment of approximately $25 per eligible device, provided that Apple will not pay more than $500 million in aggregate to the Settlement Class Members. If the total value of approved claims submitted exceeds the $500 million Ceiling, the value of each approved claim (per eligible device) will be reduced on a pro rata basis. Additionally, under the proposed settlement, if the total value of approved claims submitted by Settlement Class Members does not exceed the $310 million Floor, the value of each approved claim (per eligible device) may be increased on a pro rata basis, up to a maximum of $500 per device.

There were 2.2 million claims (before deduplication) and a minimum payout of $310,000,000 to customers. Assuming the lawyers took 1/3, that's roughly $96 per claim. Deduct settlement administration costs and the deduplications, and that's likely where we end up at $92.17

 

[ignatius345]

I never realized they were refurbished. I've had an iPhone 5 and iPhone 6S replaced because I damaged it. AppleCare covered and it was replaced. They worked perfectly fine and then I upgraded from there. For refurbished they worked perfectly fine.

Me neither. I think when they replaced my iPhone on the occasion in question, I was just very grateful to be getting a new one. I'd broken the screen all on my own and they just very nicely gave me a free replacement, well before AppleCare+ rolled out. I'll be promptly forking that settlement money back over to them in some form anyway, tbh.

I've always bought refurbished Apple products when I can and have found them totally indistinguishable from new ones (aside from the plainer box). Still doesn't get Apple off the hook re: the legality of settling warranty claims with refurbished devices, though.