Class Members receive unexpected second check from class action suit against Apple

In 2022, Apple started sending customers payments related to a class-action suit it settled for $95 million. The suit alleged that Apple violated the terms of its AppleCare extended warranty by sending customers eligible to receive a replacement device one that was refurbished. AppleCare terms call for Apple to send customers a device that is "new or equivalent to new in performance and reliability" whenever a replacement device is called for.

Minus attorney fees, $68 million was left to pay the plaintiffs. Each plaintiff received the princely sum of $14. That is not enough to represent the difference between a refurbished iPhone and a new one, but the plaintiff's lawyers somehow thought it was a good deal and accepted it while the judge signed off on it. Now, the plaintiffs who received the first check have been unexpectedly sent a second check for $26.18, almost double the original payout.

One of those who received a second check was 9to5Mac editor Michael Potuck and his overall payout from the suit came to $40.18, probably not enough to treat his colleagues to a decent meal. You might be wondering why Apple decided to send out more money to the Plaintiffs and the answer is simple. Not all members of the class redeemed their initial payment (they had a deadline to do this) and as a result, there was extra money left over in the Settlement Fund. This money was distributed to the Class Members who redeemed their initial payment before the deadline.

Those who received the second check were advised that, "The enclosed check is only valid until May 15, 2024. Please deposit promptly." It is rare for Class Members in a class-action suit to receive a second bonus payment but in this case, it happened and we are pretty sure that this payment will wipe out the Settlement Fund. In other words, Class Members should not expect to receive a check related to this lawsuit every two years as though it were an annuity.