Apple Agrees to Pay $95 Million to Settle Lawsuit Claiming Refurbished Devices Aren't 'Equivalent to New' [Updated]

Apple on Friday reached a $95 million settlement that, pending court approval, will resolve a class action lawsuit that accused the company of violating the Magnuson–Moss Warranty Act and other U.S. laws by replacing customers' devices covered by AppleCare with refurbished devices, according to court documents accessed by MacRumors.

iphone se black
Apple's Repair Terms and Conditions for the U.S. state that, when servicing a customer's product, the company "may use parts or products that are new or refurbished and equivalent to new in performance and reliability." However, plaintiffs in the lawsuit alleged that refurbished or "remanufactured" devices are not "equivalent to new in performance and reliability" and thus sought monetary damages from Apple.

The class includes all U.S. residents who purchased an AppleCare Protection Plan or AppleCare+, either directly or through the iPhone Upgrade Program, on or after July 20, 2012, and received a refurbished replacement device. If approved, the settlement fund will be divided equally among the class members based on the number of refurbished replacement devices they received, according to the court documents.

It is anticipated that the class will receive a total of between $63.4 million and $68.1 million once attorneys' fees and other costs have been deducted. If the settlement is approved, details will be available at ReplacementDeviceLawsuit.com, and class members will also be contacted by email or mail if possible.

Apple "vigorously denied" that refurbished devices are inferior, but it opted to settle with the plaintiffs given the time and costs that would be associated with a continued trial, according to the court documents. Plaintiffs are seeking court approval on October 20 or as soon thereafter as the matter may be heard by the judge presiding over the case.

The case, Maldonado et al v. Apple, Inc et al, was first filed in July 2016 in the U.S. District Court for the Northern District of California.

Update: U.S. District Judge William H. Orrick said he will grant preliminary approval of the $95 million settlement, according to Law360.

Top Rated Comments

captrlp Avatar
31 months ago
?…Class action suits aren’t filed to compensate claimants…they’re filed to enrich attorneys.
Score: 57 Votes (Like | Disagree)
Wanted797 Avatar
31 months ago
This could be a big precedent around the world.

Here in Australia when I bought my iPad mini 2nd gen it had dust under the screen. I took it to the store and they tried to tell me because it was so new they had no replacements.

When I asked them if they had new ones they said yes but they couldn’t provide them for warranty. So I asked for a refund. Which they gave me.

Then I bought one of the new ones…
Score: 37 Votes (Like | Disagree)
magbarn Avatar
31 months ago
So a couple of fat cat lawyers made a cool $30 million for a couple of hours of work whilst the consumer gets a $5 iTunes gift card. These lawsuits are useless.
Score: 33 Votes (Like | Disagree)
JPack Avatar
31 months ago
How many people want a reworked logic board that’s been subject to liquid damage? Apple understandably wants to save money, but refurbished is definitely not equivalent to new in reliability.
Score: 28 Votes (Like | Disagree)
T3hUnkn0wn Avatar
31 months ago

How many people want a reworked logic board that’s been subject to liquid damage? Apple understandably wants to save money, but refurbished is definitely not equivalent to new in reliability.
So you think Apple, the actual company, takes liquid damaged devices and brushes them off to send back out as replacement devices?
Score: 18 Votes (Like | Disagree)
Luba Avatar
31 months ago
So are Apple's T&C different now or do we still get refurbished as a replacement?
Score: 16 Votes (Like | Disagree)

Popular Stories

Beyond iPhone 13 Better Blue Face ID Single Camera Hole

Six Reasons to Wait for Next Year's iPhone 17

Thursday February 22, 2024 4:20 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models concurrently, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different, and already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
General Apps Messages

iOS 17.4 to Add This 'Groundbreaking' New Messaging Feature

Friday February 23, 2024 5:05 am PST by
With iOS 17.4, set to arrive in March 2024, Apple is bringing a new cryptographic security feature to iMessage called PQ3. This "groundbreaking" and "state-of-the-art" protocol provides "extensive defenses against even highly sophisticated quantum attacks," according to Apple. Let's break down what that means. Apple's iMessage service already supports end-to-end encryption, but security...
iPhone Notch

Apple Explored These Notch and Dynamic Island Designs for iPhones

Friday February 23, 2024 2:05 pm PST by
With the iPhone 14 Pro models in 2022, Apple introduced the Dynamic Island, which can morph and expand to display system alerts, sports scores, and a variety of other information. The feature makes the space surrounding the front camera and Face ID sensors useful compared to the notch on older iPhone models. Apple explored a variety of ideas for the iPhone's notch area over the years before...
New Macs iPads iOS 17 4

What to Expect at Potential Apple Event in March: iPads, Macs, and More

Friday February 23, 2024 8:35 am PST by
Apple often holds its first media event of the year in March, so the company could be just weeks away from announcing new products. Below, we have outlined what to expect from a potential Apple Event this March. Past Apple Events in March Apple has held five events in March since 2015:Monday, March 9, 2015 Monday, March 21, 2016 Tuesday, March 27, 2018 Monday, March 25, 2019 Tuesday,...
iOS 17

iOS 17.4 Coming Soon With These New Features for Your iPhone

Monday February 26, 2024 6:08 am PST by
In a press release last month, Apple confirmed that iOS 17.4 will be released in March, and the update includes several new features and changes for the iPhone. Key new features in iOS 17.4 include major App Store changes in the EU, Apple Podcasts transcripts, and an iMessage security upgrade. The update also adds new emoji and includes preparations for the launch of next-generation CarPlay...
applearcade

Game Developers Describe 'Smell of Death' Around Apple Arcade

Monday February 26, 2024 7:24 am PST by
Some game developers are dissatisfied with Apple Arcade amid concerns about the subscription service's future, a new report claims. Sources speaking to mobilegamer.biz described a "smell of death" around Apple's games subscription service and noted the difference between the company's investment in TV and music, and its interest in games. "At the very top of the company there needs to be a ...