Apple Will Pay Up to $500 Million for iPhone-Slowing Software Updates - Here’s What We Know [UPDATE]

Apple Inc. has agreed to pay as much as $500 million to resolve litigation that alleged the company intentionally slowed down and ultimately harmed the performance of older iPhones through a series of software updates.

If approved, the settlement will end more than two years of multidistrict litigation that included 66 class action complaints from consumers who claimed Apple included code in certain iOS updates— iOS 10.2.1 and 11.2— that throttled the performance of older iPhones. In addition, consumers alleged Apple misrepresented the nature of the software updates and failed to adequately disclose the impact the iOS fixes would have on their devices.

The proposed settlement, which was submitted on February 28, now awaits preliminary approval from U.S. District Judge Edward Davila.

Here’s what we know so far. Keep in mind that because this is a proposed settlement, the information on this page may be subject to change.

Who’s covered by the settlement?

The proposed deal looks to cover all current and former owners of iPhone 6, 6 Plus, 6s, 6s Plus, 7, 7 Plus and SE devices who ran iOS 10.2.1 or later or iOS 11.2 or later before December 21, 2017 in the United States.

How much is available through the settlement?

According to the motion for preliminary settlement approval, Apple will pay a minimum of $310 million. The maximum amount the company will pay to resolve the litigation is $500 million.

The final amount of the settlement will ultimately be determined by the number of consumers who file valid claims.

How much can I get?

Those who file valid claims may receive anywhere between $25 and as much as $500 for each iPhone they owned that was affected by Apple’s software updates, court documents state. Consumers’ payouts will increase or decrease depending on a number of factors, including the number of people who file valid claims, the amounts decided upon for attorneys’ fees and plaintiff service awards, expenses for sending out class notices, and more.

Payments to consumers may increase in the event that the total amount paid by Apple does not meet the minimum settlement award of $310 million, the settlement document explains. On the other side of the coin, the amount of individual payouts from the settlement may be reduced if the number of iPhone devices identified in approved claims, multiplied by $25, exceeds Apple’s settlement ceiling of $500 million.

The parties stress in the motion for preliminary approval that no leftover settlement money will revert back to Apple under any circumstances.

Who’s handling the administration of the settlement?

The parties have proposed Angeion Group to handle the settlement administration duties. If the company is permitted by the court to send out notices to and handle claims submitted by iPhone users, they can be contacted with any questions here.

What comes next?

Now that all this is on paper and submitted to the court, the proposed settlement awaits preliminary approval from U.S. District Judge Edward Davila. If the deal gets the green light, the details concerning when claims can be filed and the deadlines for those who want a piece of the settlement—and for those who wish to opt out—will become clearer.

Then again, it’s entirely possible that Judge Danvila may find some underlying issues with the settlement—just as the judge did for the proposed Kellogg sugary cereal and snack bar deal—and send everyone back to square one. Only time will tell.

How do I join this lawsuit?

Those who owned an older iPhone model don’t need to do anything to “join” this lawsuit. In general, you don’t really have to do anything at all in order to “join” most class actions.

For the most part, consumers only need to do something when the time comes for settlement claims to be submitted. Many settlements require consumers to fill out claim forms and provide documentation supporting their claims online through a designated settlement website or by mail.

Though potentially subject to change, those covered by the Apple iPhone settlement may be required to submit their name, address, email address and serial number of the iPhone or iPhones affected by Apple’s software updates.

So, I can’t file a claim yet?

No, not just yet. Once preliminary approval is given, then it’ll be just about time to roll.

How can I stay informed?

As we noted at the top of this post, we’ll update this page with any new details—including when it’s time to file a claim, along with where and how iPhone users can do so. You can also sign up for ClassAction.org’s newsletter—here—to have case updates and class action news sent directly to your inbox.