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Saturday, February 18, 2012, 02:30 pm
Apple issues statement on iPhone 4 'antenna-gate' lawsuit settlement
After settling a class-action lawsuit over the "antenna-gate" controversy that surrounded the iPhone 4 in 2010, Apple has issued a statement declaring the $15 payouts apply to a "small number" of people."This settlement relates to a small number of customers who indicated that they experienced antenna or reception issues with their iPhone 4 and didn't want to take advantage of a free case from Apple while it was being offered in 2010," Apple spokeswoman Natalie Harrison said in a statement to The Loop.
The settlement offers users either a free iPhone bumper case, which the company sells for $29, or they can instead opt to receive $15 in cash. Those who held out for the lawsuit essentially gain nothing, as Apple's original settlement to users in 2010 was to give away free bumper cases to iPhone 4 buyers as well.
In fact, though the iPhone 4 free bumper case program technically ended on Sept. 30, 2010, Apple quietly still offered free cases after that deadline to customers who contacted AppleCare support with reception issues. Those involved in the lawsuit only gain the new option of accepting $15, which is about half the value of the bumper case.
Apple's settlement applies to 18 separate lawsuits that were drawn together into one class-action complaint. Apple was accused of "misrepresenting and concealing material information in the marketing, advertising, sales and servicing of its iPhone 4."
Apple initiated the giveaway after complaints about loss of signal when covering the bottom left corner of the iPhone 4 gained a considerable amount of media attention. Apple responded by stating that all smartphones experience some form of attenuation when held in a certain way.
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Quote:
Originally Posted by AppleInsider 
The settlement offers users either a free iPhone bumper case, which the company sells for $29, or they can instead opt to receive $15 in cash.
The settlement offers users either a free iPhone bumper case, which the company sells for $29, or they can instead opt to receive $15 in cash.
Wonder how much the parasite lawyers got.
It was a bad design for those who use no case, but most people do and the 4S even fixed the issue for those that don't. Steve was arrogant about it though, which rubbed a lot of people the wrong way, even John Gruber.
Quote:
Originally Posted by Shaun, UK
Wonder how much the parasite lawyers got.
Wonder how much the parasite lawyers got.
We all know this is the real reason the lawsuit happened. What can you do.
Quote:
Originally Posted by Tallest Skil
This is what I don't get.
"We offered customers a free case to solve a problem that didn't exist. They wouldn't shut up, so after a year and a half of wasting our time and theirs, we're giving them the same offer again."
They had their chance. They shouldn't be given squat.
This is what I don't get.
"We offered customers a free case to solve a problem that didn't exist. They wouldn't shut up, so after a year and a half of wasting our time and theirs, we're giving them the same offer again."
They had their chance. They shouldn't be given squat.
Except for the obviously high sunk cost of the legal fees it sounds like this shouldn't cost Apple much at all. Most people already took advantage of the free cases nearly 2 years ago. The cases cost Apple less than $15 to produce so I imagine that regardless of which option the people in the class chose the total cost to Apple will be less than $2 million. I can't believe that even 100,000 people pursued legal action over the initial offer of a free case.
Quote:
Originally Posted by GregInPrague
Except for the obviously high sunk cost of the legal fees it sounds like this shouldn't cost Apple much at all. Most people already took advantage of the free cases nearly 2 years ago. The cases cost Apple less than $15 to produce so I imagine that regardless of which option the people in the class chose the total cost to Apple will be less than $2 million. I can't believe that even 100,000 people pursued legal action over the initial offer of a free case.
Except for the obviously high sunk cost of the legal fees it sounds like this shouldn't cost Apple much at all. Most people already took advantage of the free cases nearly 2 years ago. The cases cost Apple less than $15 to produce so I imagine that regardless of which option the people in the class chose the total cost to Apple will be less than $2 million. I can't believe that even 100,000 people pursued legal action over the initial offer of a free case.
I'd wager that with the severity of the case and with retainers this was probably given to some newer lawyers at the firm and likely didn't cost Apple much of anything.
I've owned an iPhone 4 since it was released. Not ONCE have I had a dropped called because of this. I personally know around 20 people who have the phone, and personally have asked them at one point or another if they've ever had reception issues. Most of them look at me in a weird way when I ask that, and the answer is always 'No'. This admittedly anecdotal evidence makes it very difficult for me to believe that this was a real, widespread, inherent problem of the iPhone 4 design. Its an inherent phone antennae issue in general, and when combined with spotty coverage and artificial misinformation campaign of outrage from sites such as Gizmodo which the media then jumped upon because of the Apple name, it became this manufactured 'scandal', certainly not deserving of any class action lawsuits or compensation. But hey, good for them. Hope they spend that $15 well.
Quote:
Originally Posted by GregInPrague
Except for the obviously high sunk cost of the legal fees it sounds like this shouldn't cost Apple much at all. Most people already took advantage of the free cases nearly 2 years ago. The cases cost Apple less than $15 to produce so I imagine that regardless of which option the people in the class chose the total cost to Apple will be less than $2 million. I can't believe that even 100,000 people pursued legal action over the initial offer of a free case.
Except for the obviously high sunk cost of the legal fees it sounds like this shouldn't cost Apple much at all. Most people already took advantage of the free cases nearly 2 years ago. The cases cost Apple less than $15 to produce so I imagine that regardless of which option the people in the class chose the total cost to Apple will be less than $2 million. I can't believe that even 100,000 people pursued legal action over the initial offer of a free case.
The lead attorney for the settlement says the affected class includes 25 million buyers, or a possible $375 million payout, not including attorney fees. I believe someone is mistaken if claiming the settlement applies to only a small group.
EDIT: I see AI's error(?). They've taken Apple's statement that "This settlement relates to a small number of customers. . " and changed it to say "Apple has issued a statement declaring the $15 payouts apply to a "small number" of people." That's not what Apple said.
Quote:
Originally Posted by Ireland
It was a bad design for those who use no case, but most people do...
It was a bad design for those who use no case, but most people do...
I actually doubt most people use a case. A large amount of people, sure, but certainly not most.
Quote:
Originally Posted by redbarchetta
I actually doubt most people use a case. A large amount of people, sure, but certainly not most.
I actually doubt most people use a case. A large amount of people, sure, but certainly not most.
I probably would if Apple made an iPhone dock that could work without first removing the Bumper.
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This is what I don't get.
"We offered customers a free case to solve a problem that didn't exist. They wouldn't shut up, so after a year and a half of wasting our time and theirs, we're giving them the same offer again."
They had their chance. They shouldn't be given squat.