Apple has agreed to pay up to $500 million to settle a class action that accused it of slowing older iPhones to nudge owners toward a new one. The deal sets a floor: at least $310 million in total.
The proposed settlement came out on a Friday and calls for $25 per iPhone. That figure may shift depending on how many devices turn out to be eligible.
Who is covered
The class takes in current and former iPhone owners in the US. Their phones must be an iPhone 6, 6 Plus, 6S, 6S Plus or SE running iOS 12.2.1 or later. Owners of an iPhone 7 or 7 Plus are covered too, if the phone was running iOS 11.2 or later before 21 December 2017.
What the fight was about
Apple acknowledged in 2017 that its iOS software slowed the performance of some older iPhones. Criticism and lawsuits followed. The company apologized for not being open about it, updated its software and offered battery replacements.
Apple’s explanation is a mechanical one. An aging battery, a very cold phone or a device running at low power can cause it to shut down abruptly during demanding tasks. Slowing the processor, the company says, keeps that from happening. Critics saw something else: a quiet way to push people into buying new phones and fill Apple’s coffers.
Apple denied any wrongdoing in the case and did not respond to a request for comment on Monday.
Joseph Cotchett, co-lead counsel for the plaintiffs, said in an emailed statement that the settlement “provides substantial relief to Apple consumers and, going forward, will help ensure that customers are fully informed when asked to update their products.”
Judge Edward Davila of the US District Court for the Northern District of California still has to approve the deal.
