Apple to Send Payouts After Settling iPhone 'Batterygate' Lawsuit: How Much Will Users Receive?

A class-action complaint filed in 2018 alleges that Apple intentionally slowed down older iPhones to promote upgrades. Apple consumers are already receiving $65 in compensation.

The "Batterygate" lawsuit claimed Apple purposefully throttled iPhone performance to increase sales. Apple agreed to settle the case in March 2020 to terminate the five-year legal dispute for up to $500 million, according to Gizmodo.

The settlement faced challenges along the way. Due to disagreements between two iPhone owners over specific clauses of the contract, the 9th Circuit Court of Appeals filed and heard an appeal. Nevertheless, the protracted legal saga's last chapter was finally closed with the denial of this appeal; during the litigation, which was first filed in 2018, almost three million claims were made.

Apple Admitted 'Batterygate'

The 2017 release of Apple's iOS 10.2.1 upgrade was central to the dispute. In order to avoid unplanned shutdowns, this update improved the performance of older iPhones with poor batteries, per MacRumors, However, as a consequence, many consumers noticed worse performance speeds. Consumer outcry and legal action ensued, despite Apple's claims that the software change was not meant to force people to buy new batteries or upgrade to newer iPhones.

The legal team defending iPhone claims, Cotchett, Pitre & McCarthy, LLP, said that the 9th Circuit denied Apple's request to dismiss the case, enabling the legal battle to continue. The federal Computer Fraud and Abuse Act, the California Computer Data Access and Fraud Act, the California Unfair Competition Law, and Trespass to Chattels were among the laws that were allegedly broken in the complaint.

Backlash on Apple's Scheme

Apple apologized and reduced the cost of battery replacements to $29 until the end of 2018 in response to the outcry. iPhone users have to have filed a claim before October 6, 2020, to be qualified for the current compensation. The reimbursement totals around $65 per claimant and is currently being given out to individuals who meet the qualifying requirements.

Protected iPhone users will get millions of dollars. Apple will pay within the range of $310 million and $500 million, depending on the allegations, under the settlement conditions, per The Verge.

Eligible claimants who filed within the deadline should be compensated. The case brought attention to the contentious practice of Apple, which has been accused of intentional obsolescence, of reducing device performance due to battery deterioration without giving users enough notice.