Apple to Pay $53 Million for Refusing Warranty Service Over Alleged Water Damage

Apple has agreed set to settle a class action lawsuit over the company's refusal to repair iPhone and iPod touch devices that had pink liquid contact indicators. Wired obtained a copy of the unfiled agreement which has Apple agreeing to a $53 million settlement.

The settlement, (.pdf) set to be filed in a San Francisco federal court in the coming weeks, provides cash payouts to potentially hundreds of thousands of iPhone and iPod Touch consumers who found Apple unwilling to repair or replace their faulty phones under Apple’s one-year standard, or a two-year extended, warranty. Apple chief litigation counsel Noreen Krall signed the agreement Wednesday. Apple admits no wrongdoing in the settlement, which needs a judge’s approval.

The lawsuit alleged that no matter what the problem with a device, Apple refused to honor the warranty if the white indicator tape had turned pink or red. 3M, the manufacturer of the tape, says humidity and not water contact could cause the tape to turn color.

Payouts are around $200 but could be more or less depending on the number of claims submitted.

Apple has eased its policies since the lawsuit was filed.