Apple to pay $53M settlement in iPhone, iPod touch warranty class action suit

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Apple has reportedly agreed to settle a class action suit regarding allegedly suspect warranty practices, with the company planning to pay out some $53 million to iPhone and iPod touch owners who claim the company did not honor its one-year standard protection plan.

According to Wired, which acquired a leaked copy of the agreement, the settlement was signed by Apple counsel Noreen Krall on Wednesday and will be filed with a California federal court sometime in the next few weeks.

In the lawsuit, plaintiffs allege Apple wrongly refused to repair or replace broken iPhone and iPod touch units which were deemed to be damaged due to contact with water. Every device has a piece of liquid contact indicator tape placed at the bottom of its headphone jack, which turns from white to pink in the presence of water.

While Apple policy holds that water damage voids the standard product warranty, the liquid indicator's manufacturer, 3M, said humidity could be result in a false positive.

Under the settlement terms, Apple will pay out between $105 to $300 depending on the device and amount of on-board storage, with the amounts reflecting the average cost of repair. The document states class members can double the payout depending on how many times they sought warranty coverage.

List of affected devices:

Settlement Payout
Source: Wired