Cupertino-based tech giant Apple Inc has agreed to a $500 million settlement to finally end litigation against it over its alleged tampering of older iPhone models. The case against the company accuses it of intentionally and quietly slowing down its older smartphones to force consumers to upgrade to newer models or to buy new batteries.
The settlement of the class-action lawsuit against the company was reportedly reached late last week. However, the deal still needs to be approved by U.S. District Judge Edward Davila in California before it can be completed.
Under the agreement, Apple will be paying around $25 per iPhone that it intentionally slowed down through operating system updates. The rate is adjustable depending on the number of iPhones eligible with the minimum total payout set at $310 million.
The smartphones that were covered under the settlement included older models such as the iPhone 6, 6 Plus, 6s, 6s Plus, 7, 7Plus, and SE running iOS 10.2.1 or later. US owners using the iPhone 7 and 7 Plus are also covered.
Despite agreeing to the settlement, Apple continued to deny any wrongdoing. The company stated that it agreed to the settlement in order to put an end to the nationwide class-action case and to avoid any further litigation costs.
The case against the tech giant began right after hundreds of consumers had complained that their smartphones started performing poorly after upgrading their operating systems to the latest version. Most users assumed that their smartphones were simply reaching the end of their lifecycles and that they had to immediately replace them.
Apple had argued that the so-called "throttling" of older models was to ensure the safety of consumers as it essentially fixed battery temperature problems and other issues. Most affected consumers, however, had disagreed and called the practice as misleading.
After the scandal reached its peak, Apple made a public apology for slowing down older models. The company also lowered the price for all replacement batteries from $79 to $29.
Lawyers representing Apple's consumers stated that the settlement was fair and reasonable but was lower than expected. Damages experts apparently estimated a maximum payment of around $46 per eligible iPhone model. On top of the $25 per iPhone that Apple had already agreed to pay, lawyers of the plaintiffs are seeking up to $93 million or about 30 percent of the maximum $310 million, to cover all legal fees and up to $1.5 million for other expenses.
