Apple to pay $53 million to settle warranty suit

According to Wired, and a copy of the settlement (see below), Apple will pay $53 million to settle a class action suit that claimed the company refused to honor its standard one year warranty for the Apple iPhone and the Apple iPod touch. Judging from the settlement, it seems that Apple refused to honor its warranty for several owners of the above devices due to a positive reading of the Liquid Contact Indicator which showed that the devices in question had been in contact with a liquid which violates the warranty. However, 3M, the manufacturer of the LCI, admitted that humidity could give off a false positive reading.

Members of the class with an OG 16GB Apple iPhone will be receiving the highest amount of the settlement, $300. Those with a second generation 8GB Apple iPod from 2009 will receive the lowest amount, $105. You can check the chart that accompanies this article. Under the terms of the settlement, certain members of the class can receive double the payout depending on how many times they sought warranty coverage.

source: Wired via AppleInsider