Apple Agrees To Pay Up To $500 Mln To Settle Slow IPhone Lawsuit In US

Apple Inc. (AAPL) agreed to pay as much as $500 million to settle a class-action lawsuit in U.S. that claims the company deliberately slowed down the performance of older iPhones to induce owners to buy new phones or batteries, according to reports citing a court document on Friday.

The settlement requires approval by U.S. District Judge Edward Davila in San Jose, California.

Apple reportedly denied any wrongdoing, but it wants to settle the case to avoid the burdens and costs of litigation.

As per the proposed settlement, Apple has to pay $25 per device to the owners of certain iPhone models, with total minimum payment of $310 million. The amount each owner receives could increase or decrease depending on how many iPhones are eligible, the reports said.

The settlement covers U.S. owners of the iPhone 6, 6 Plus, 6s, 6s Plus, 7, 7Plus or SE that ran the iOS 10.2.1. It also covers U.S. owners of the iPhone 7 and 7 Plus that ran iOS 11.2 or later version, before 21st of December, 2017.

In 2017, Apple confirmed that it did slow down some iPhones, but said it only did so to "prolong the life" of the devices.

Apple said the lithium-ion batteries in the devices became less capable of supplying peak current demands, as they aged over time.

That could result in an iPhone unexpectedly shutting down to protect its electronic components.

So, it released a software update for the iPhone 6, iPhone 6s and iPhone SE which "smoothed out" battery performance, the company said.

Last month, Apple was fined 25 million euros by a French regulator for deliberately slowing down older iPhone models without notifying users.

AAPL closed Monday regular trading at $298.81 up $25.45 or 9.31 percent. In the after-hours trade, the stock further gained $0.18 or 0.06 percent.

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