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

Here in Australia when I bought my iPad min 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
8 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
8 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
8 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
8 months ago
So are Apple's T&C different now or do we still get refurbished as a replacement?
Score: 16 Votes (Like | Disagree)

Related Stories

ipad 8 2020 279

Apple Begins Selling Refurbished 8th-Generation iPad Starting at $279

Tuesday August 10, 2021 5:25 pm PDT by
Apple this week began selling refurbished 8th-generation iPad models through its online store in the United States for the first time since the device was released last year. As usual, the refurbished models are discounted by approximately 15% compared to brand new models, with pricing starting at $279 for the 32GB model versus $329 new. Apple says its certified refurbished iPad models are...
Apple Logo Cash Feature Yellow

Apple's $1.1 Billion Patent Dispute With Caltech Granted New Damages Trial

Friday February 4, 2022 7:27 am PST by
Apple and its supplier Broadcom today convinced a U.S. appeals court to reject a jury verdict that required them to pay $1.1 billion for infringing on Wi-Fi patents that belong to the California Institute of Technology (via Reuters). In 2016, Caltech accused Apple and Broadcom of infringing on its patents related to the Wi-Fi technology used in many Apple devices. Caltech's patents, granted...
Apple Logo Cash Orange 1

Former Apple Employee Charged With Defrauding Company of Over $10 Million

Monday March 21, 2022 3:57 am PDT by
A former Apple employee involved in the company's supply chain and responsible for making order purchases and invoicing them back to Apple has been charged by U.S prosecutors for defrauding the tech giant of over $10 million, Reuters reports. According to court filings in San Jose, California seen by Reuters, Dhirendra Prasad, a former employee in Apple's supply chain, is facing five...
app store blue banner epic 1

Epic Lost Trial Due to Flawed Argument, Not Legal Error, Apple Says in Appeals Filing

Thursday March 24, 2022 3:32 pm PDT by
Apple's legal battle with Epic Games is continuing on, and today, the Cupertino company filed an opening brief with the United States Court of Appeals for the Ninth Circuit. Both Apple and Epic Games opted to appeal the original ruling in the Epic Games v. Apple case as neither company was satisfied with the outcome. Epic lost, while Apple was subject to App Store changes that are on hold pending ...
iOS App Store General Feature JoeBlue

Developers Now Able to Submit Claims for $250 to $30,000 Payments From Apple in Lawsuit Settlement

Friday January 14, 2022 12:24 pm PST by
Apple in August announced plans to pay $100 million to settle a class-action lawsuit levied by U.S. developers, and as of today, the website that will allow developers to submit a claim for a payout has gone live. The $100 million that Apple provided is being distributed as part of a "Small Developer Assistance Fund," and developers can claim between $250 and $30,000 based on their historic...
refurbished m1 imac us store

Apple Now Selling Refurbished 24-Inch M1 iMacs in the United States

Wednesday August 18, 2021 5:35 pm PDT by
Apple this evening began offering refurbished versions of the 24-inch M1 iMac in its U.S. online store, one day after starting to sell refurbished M1 iMacs in the UK. Apple has over a dozen M1 iMacs available at the current time, and this is the first time the M1 iMacs have been available through the refurbished store in the U.S. since the machines launched in April. The entry-level model ...
Kardia Band apple watch

Apple to Face Claims it Bars Third-Party Heart-Rate App Functionality on Apple Watch

Tuesday March 22, 2022 5:14 am PDT by
Apple must face claims it illegally monopolized the U.S. market for heart-rate monitoring apps on Apple Watch, a California-based federal judge said on Monday. AliveCor, a company that that markets an ECG "KardiaBand" for the Apple Watch, filed an antitrust lawsuit against Apple in May 2021 accusing the Cupertino company of changing the heart-rate algorithm for the Apple Watch to gain an...
apple employees trio

Apple Outlines $30M Bag Check Lawsuit Settlement on Legal Website

Wednesday January 12, 2022 3:28 pm PST by
Apple in November settled a long-running lawsuit over employee bag checks, with the Cupertino company agreeing to pay $29.9 million to employees who were subjected to off-the-clock bag searches, and now details about the settlement are available on Apple's website. California employees first sued Apple in 2013, and in 2015, the case escalated into a class action lawsuit. Employees claimed...

Popular Stories

RIP iPod Feature

RIP iPod: A Look Back at Apple's Iconic Music Player Over the Years

Friday May 13, 2022 2:25 pm PDT by
Apple earlier this week announced the discontinuation of the iPod touch, and because it was the last iPod still available for purchase, its sunsetting effectively marks the end of the entire iPod lineup. To send the iPod on its way, we thought it would be fun to take a look back at some of the most notable iPod releases over the last 21 years. Original iPod (2001) Introduced in October...
iOS 16 mock for article

Gurman: iOS 16 to Include New Ways of System Interaction and 'Fresh Apple Apps'

Sunday May 15, 2022 6:14 am PDT by
iOS 16 will include new ways of interacting with the system and some "fresh Apple apps," Bloomberg's Mark Gurman has said, offering some more detail on what Apple has in store for the upcoming release of iOS and iPadOS set to be announced in a few weeks at WWDC. In the latest edition of his Power On newsletter, Gurman wrote that while iOS 16 is not likely to introduce a major face-lift to...
14 16 inch 2021 mbps back to back feature orange

Five Things You Still Can't Do With a MacBook Pro

Wednesday May 11, 2022 11:16 am PDT by
It's been over 200 days since Apple debuted its redesigned MacBook Pro lineup. Offered in 14-inch and 16-inch display sizes, the new-look MacBooks wowed Apple fans and creative pros alike with their powerful custom Apple silicon, mini-LED screen, and multiple connectivity options. But there are still some things you can't do with a MacBook Pro. Here are five features some Mac users are still...
iOS 16 mock for article

Which Devices Will iOS 16 and iPadOS 16 Support?

Thursday May 12, 2022 7:29 am PDT by
While there are as yet no concrete rumors related to which devices iOS 16 and iPadOS 16 will support, the discontinuation of the iPod touch earlier this week may be an indication that as many as nine devices could be about to lose support for Apple's upcoming operating systems. iOS and iPadOS 13, 14, and 15 support all of the same devices, with the iPhone 6S and iPhone 6S Plus,...
apple mac ipad watch trade in

Apple Launches Limited-Time Bonus Trade-In Credit for iPhone, iPad, Mac, and Apple Watch in Many Countries

Wednesday May 11, 2022 5:14 am PDT by
Apple has launched a special limited-time offer for iPhone, Apple Watch, Mac, and iPad trade-in that offers customers additional credit when trading in their only device for a new one. The offer is being run in several countries including the US, UK, Germany, Spain, Italy, South Korea, Japan, Taiwan, China, India, and France. In the UK, Apple is offering up to £50 of extra trade-in credit...
sony

Sony Unveils Redesigned WH-1000XM5 Headphones With Improved Noise Cancelation

Thursday May 12, 2022 9:26 am PDT by
Sony's flagship WH-1000XM4 noise-canceling headphones have been among the best on the market for some time, and today Sony announced its fifth-generation WH-1000XM5 headphones, boasting a new design and several improvements over the previous model. The redesigned headphones replace the shrouded arms that swivel on the XM4's with an exposed arm that has a single contact point at the earcups,...
apple tv 4k design clue

Kuo: New Apple TV to Launch in Second Half of 2022, Lower Price Possible

Friday May 13, 2022 7:58 am PDT by
Apple plans to launch a new version of the Apple TV in the second half of 2022, according to well-known analyst Ming-Chi Kuo. In a tweet today, Kuo said the new Apple TV will have an improved cost structure, suggesting that the device could have a lower price that is more competitive with other streaming media players like Google's Chromecast line, Amazon's Fire TV line, and the Roku line. ...
iPhone 14 Purple Feature

Full Range of iPhone 14 Color Options Revealed by Purported Leak From China

Wednesday May 11, 2022 2:20 am PDT by
The iPhone 14 and iPhone 14 Pro models will be available in a refreshed range of color options, including an all-new purple color, according to a recent rumor. The claim comes from a post on Chinese social media site Weibo by an unverified source and purports to reveal the full range of color options for Apple's upcoming iPhone 14 and iPhone 14 Pro models. Compared to the selection of color...