Pomerantz Achieves $20 Million Settlement Over Allegedly Bad iPhone Update

POMERANTZ MONITOR | JULY AUGUST 2022

By The Editors

On May 3, 2022, after six years of hard-fought litigation, Pomerantz and co-counsel achieved a significant victory on behalf of consumers by securing a $20 million settlement, pending final approval of the court, in a consumer class action against Apple, Inc., on behalf of iPhone owners. The motion to settle, filed in U.S. District Court for the Eastern District of New York and unopposed by Apple, would entitle the class members to a recovery of between $15 to $150 per device owned, depending on how many class members file claims. The named plaintiffs consider this a successful result, as the secondary market price of the phones, according to Apple, is not more than that.

In October 2020, Pomerantz successfully fought to have the court certify two classes of iPhone users: All individuals and entities in New York (Class One) or New Jersey (Class Two) who currently own or have owned an iPhone 4S that was updated to any version of iOS 9 from any version of iOS 7 or iOS 8.

Then, in February 2021, Plaintiffs defeated Apple’s Rule 23(f) Petition seeking permission from the U.S. Court of Appeals for the Second Circuit to appeal the district court’s class certification decision.

Plaintiffs alleged that Apple misrepresented iOS 9 by telling consumers that the software update would enhance the performance of their devices, when this was not in fact the case. After the update, Plaintiffs’ devices slowed down significantly. According to Plaintiffs’ Amended Complaint:

The update significantly slowed down their iPhones and interfered with the normal usage of the device, leaving Plaintiffs with a difficult choice: use a slow and buggy device that disrupts everyday life or spend hundreds of dollars to buy a new phone. Apple explicitly represented to the public that iOS 9 is compatible with and supports the iPhone 4s. This is also obvious from the fact that Apple made the software available for the iPhone 4s, but not for older versions of the iPhone.

Discovery spanned four years and included over 15 depositions, the review of over 48,000 documents – totaling over 539,000 pages – and the submission of expert reports totaling over 770 pages.

“This case involved the application of sophisticated legal issues to a highly complex technological consumer product,” said Pomerantz Partner Michael Grunfeld, who led the litigation. “We are pleased that we were able to achieve this favorable result for the Class by prevailing at every stage of the litigation before reaching this settlement near the close of discovery in the merits phase of the litigation.”