The plaintiff, Bianca Wofford, claims that Apple engaged in unfair business practices and false advertising by offering the upgrade to 3G owners. Wofford's attorney said that "The true fact of the matter...is that the iOS 4 is a substantial 'downgrade' for earlier iPhone devices and renders many of them virtually useless iBricks."
Those are pretty strong words for a suit that's not only weak, but also a little late. Apple's yearly updates aren't meant for every past model. And being the litigation-magnet that they are, Apple is careful to let owners know that a new OS might not be perfect for their model. Even so, the iPhone 3G was reported to work with iOS 4, and ended up with more than its share of problems.
The suit hasn't yet gained class action status. It will first need approval from a judge, and it would then move to trial, where iPhone 3G owners could be awarded compensation. Our guess is that this won't get very far. Apple would have an easier time settling with this one disgruntled owner than dealing with an actual trial.
Besides, someone should have told the plaintiff that she can downgrade her iOS update. Maybe her lawyer forgot to mention that?
source: Wired via AppleInsider