Class Members Get Unexpected Second Payout from Apple Class Action Lawsuit

What you should know

  • In 2022, Apple began distributing payments to customers in relation to a class-action lawsuit it settled for $95 million. The lawsuit claimed that Apple violated its AppleCare extended warranty terms by providing refurbished devices as replacements instead of new ones.
  • After attorney fees, $68 million was left to pay the plaintiffs, each of whom initially received $14. However, plaintiffs who redeemed their initial payment before the deadline were later sent a second check for $26.18 due to leftover funds in the Settlement Fund.
  • One of the recipients of the second check was 9to5Mac editor Michael Potuck, whose total payout from the lawsuit amounted to $40.18.
  • The second check is only valid until May 15, 2024, and it is unlikely that Class Members will receive additional payments related to this lawsuit in the future.

Full Story

In 2022, Apple began distributing payments to customers. This was part of a $95 million class-action settlement.

The lawsuit claimed that Apple breached AppleCare’s extended warranty terms. Customers eligible for a replacement device were sent refurbished ones, not new. AppleCare’s terms stipulate that Apple should provide a device “new or equivalent to new in performance and reliability” when a replacement is needed.

After attorney fees, $68 million remained for the plaintiffs. Each got a cool $14. It’s hardly the price difference between a new and refurbished iPhone. But the plaintiff’s lawyers seemed okay with it. They accepted the deal, and the judge gave the green light.

Then, something unexpected happened. The plaintiffs who cashed the first check received a second one. This time for $26.18, nearly double the original amount.

One of the recipients was Michael Potuck, an editor at 9to5Mac. His total payout? A whopping $40.18. Not exactly a fortune. You might be scratching your head, wondering why Apple decided to dish out more dough.

The answer is pretty straightforward. Not everyone in the class redeemed their initial payment. They had a deadline for this, and some missed it. So, there was leftover cash in the Settlement Fund. This surplus was then distributed to those who had redeemed their initial payment on time.

In a surprising twist, class members involved in the AppleCare suit received a second payment. The advice given to those who got the second check was to deposit it promptly. The check would only be valid until May 15, 2024.

It’s not every day that class members in a class-action suit get a second bonus payment. But it happened in this case. We can safely assume this payment will deplete the Settlement Fund. So, class members, don’t hold your breath for another check. This isn’t some biennial annuity.

Derrick Flynn
Derrick Flynn
With over four years of experience in tech journalism, Derrick has honed his skills and knowledge to become a vital part of the PhonesInsights team. His intuitive reviews and insightful commentary on the latest smartphones and wearable technology consistently provide our readers with valuable information.


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