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.

Popular Stories

Beyond iPhone 13 Better Blue Face ID Single Camera Hole

10 Reasons to Wait for Next Year's iPhone 17

Monday July 8, 2024 5:00 am PDT 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 simultaneously, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different – already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
iPhone 15 Pro Cameras

iPhone 17 Pro Max Will Be First Model to Feature Three 48MP Cameras

Thursday July 11, 2024 12:20 am PDT by
Next year's iPhone 17 Pro Max will feature an upgraded 48-megapixel Tetraprism camera for enhanced photo quality and zoom functionality, according to Apple analyst Ming-Chi Kuo. In his n-iphone-tetraprism-upgrade-ca62dd37e364">latest investor note published to Medium, Kuo said the key specification change would be a 1/2.6" 48MP CIS sensor, up from the 1/3.1" 12MP sensor expected to be used...
iPhone 16 Pro Front Update Blue

iPhone 16 Pro Rumored to Support 40W Fast Charging and 20W MagSafe

Wednesday July 10, 2024 3:57 am PDT by
Apple's forthcoming iPhone 16 Pro and iPhone 16 Pro Max will support 40W wired fast charging and 20W MagSafe charging, claims a rumor currently swirling around China. Right now, iPhone 15 and iPhone 15 Pro models are capable of up to 27W peak charging speeds with an appropriate USB-C power adapter, while official MagSafe chargers from Apple and authorized third parties can wirelessly charge...
AirPods Pro Beta Firmware

Apple Releases New AirPods Pro 2 Beta Firmware With Support for iOS 18 Features

Tuesday July 9, 2024 11:46 am PDT by
Apple today released a second beta firmware for the AirPods Pro 2, including both the Lightning and USB-C versions. The updated firmware has a build number 7A5244b and it is available to developers at the current time. This is the second firmware update that Apple has released since announcing new AirPods Pro 2 features in June. There are several new features that are coming to the AirPods...
Beyond iPhone 13 Better Blue Face ID

iPhone 16 Models Rumored to Have Face ID-Related Design Changes

Tuesday July 9, 2024 9:15 am PDT by
iPhone 16 models coming later this year could have some Face ID-related "design changes," supply chain publication DigiTimes said this week. The original source of this information is British newspaper The Telegraph, which six weeks ago reported that Face ID component supplier Coherent was considering selling or repurposing a manufacturing facility in Newton Aycliffe, a small town in...
orka desktop

MacStadium Releases Free Orka Desktop macOS Virtualization Software

Wednesday July 10, 2024 6:55 am PDT by
Mac cloud services provider MacStadium today unveiled Orka Desktop, a free virtualization tool that allows Mac users to create and manage macOS virtual machines locally via an easy-to-use admin panel. Orka users can create or download custom macOS images locally for their own personal use, or to collaborate with team members using a familiar workflow, versioning, audit, and review controls....

Top Rated Comments

captrlp Avatar
36 months ago
?…Class action suits aren’t filed to compensate claimants…they’re filed to enrich attorneys.
Score: 57 Votes (Like | Disagree)
Wanted797 Avatar
36 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
36 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
36 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
36 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
36 months ago
So are Apple's T&C different now or do we still get refurbished as a replacement?
Score: 16 Votes (Like | Disagree)