What just happened? Apple is always tied up in lawsuits, but it now has one fewer to deal with after settling a class-action suit involving its Powerbeats2 wireless earphones. The Cupertino giant has paid $9.5 million in the settlement, which came from an initial complaint launched in 2017.
The Powerbeats2 wireless headphones, first release in 2014, were advertised as being durable, sweat-resistant, and with great battery life, all of which the suit claimed were false.
The plaintiffs alleged that the earphones had a design defect that stopped them from charging or turning on "after a short amount of time." Apple is also accused of not repairing or replacing the Powerbeats2 within the one-year warranty period.
As noted by Apple Insider, the suit claimed breach of express warranty, breach of the Song-Beverly Act, violation of the California Consumers Legal Remedies Act, violation of the Unfair Competition Law, unjust enrichment, common law fraud and negligence.
Apple still denies the claims, saying that the only reason it's now settling is because of the "risks, uncertainties, burden, and expense of continued litigation."
Lawyers started notifying Powerbeats2 owners this week via email. Anyone who bought the devices before August 7 this year can make a claim, but only until November 20, 2020.
Attorney fees of $3.25 million and admin costs between $516K and $552K will be deducted from the $9.5 million settlement, with the rest going to owners. The amount they receive is based on a points system: those without proof of purchase will receive around $38, while those with proof of purchase or warranty repair get $76---not great news for those who paid $200 for the Powerbeats2 at launch.
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