Apple to Pay $500M Settlement for Throttling Older iPhones

Apple iPhone 5c phones are pictured at the Apple retail store on Fifth Avenue in Manhattan, New York September 20, 2013. REUTERS/Adrees Latif

Apple has tentatively agreed to a $500 million settlement after admitting to slowing down older phones. The deal would provide small payouts for many iPhone owners in the US, plus greater compensation for named class members and attorneys. It covers people who bought any product in the iPhone 6 and 7 lineup — which Apple secretly throttled to conserve battery life.

As Bloomberg Law notes, the settlement was filed in a California court last Friday and is awaiting final court approval. The deal — which took months to negotiate — would resolve dozens of class action lawsuits that were filed between 2017 and 2018, then later consolidated into one complaint.

By default, Apple will offer $25 to any current or former owner of a covered iPhone. Named class members will receive $1,500 or $3,500, and around $90 million will go toward attorneys. The settlement has a minimum payout of $310 million, so the payment might increase if few people file claims. Conversely, if payments exceed the $500 million cap, each iPhone owner will receive less money.

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SOURCE: The Verge, Adi Robertson

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