By now you’ve probably heard all the nightmare stories from people who say that their iPhone 3G was losing connection and reverting to the EDGE network when they have full bars. There was a 14 page complaint filed by Jason Medway and the behalf of thousands in a Northern California court this week. The lawsuit claims that Apple had knowledge about the defect that prevents them from maintaining a signal on AT&T’s 3G network. Medway also alleges that Apple was aware about the problem but continued to sell the device while ignoring request to fix the problems. In the end, the lawsuit is stating that Apple provided “broken promises” in regards to the phones transmission speed. Attorneys for Medway are seeking damages for thousands of class members in excess of five million dollars. Apple of course created updates to allow better reception coverage for the device. While some still state the problem is ongoing despite installing the updates, users are left to debate whether it is a hardware or software problem.