Court Greenlights $20 Million Class Action Settlement on Apple Watches

A federal court approved a $20 million settlement between Apple and users of Apple Watch in a case that claimed the devices were defective and harmed wearers.
The lawsuit alleged that Apple failed to allocate enough space within the watch to prevent this issue despite knowing “that the battery inside the Watch can suddenly swell.”
Apple Watches have injured several plaintiffs, with the devices posing a “substantial and material risk of serious injury, including lacerations, cuts, abrasions, and other injuries,” the lawsuit states.
After the lawsuit was filed, plaintiffs amended the complaint several times while Apple filed multiple motions to dismiss. The two sides eventually entered into a settlement, with Judge Haywood S. Gilliam Jr. from the U.S. District Court, Northern District of California, granting preliminary approval for the deal through an order issued on Friday.
According to the agreement, eligible class members of the settlement must be U.S. citizens who own First Generation or Series 1 through 3 Apple Watch with company records showing these users had reported potential battery swelling issues between April 24, 2015, and Feb. 6, 2024.
Apple agreed to pay $20 million in settlement, which will go toward payments to plaintiffs and class members, attorney’s fees, and settlement administration fees.
Class members can receive $20 per device they own. If there is more than $50,000 remaining in the settlement fund after all costs are covered, class members may receive up to $50 per device. Any remaining amount will go to the Rose Foundation’s Consumer Products Fund.
The lead named plaintiff in the case will receive a maximum of $5,000 in compensation, with the 10 remaining named plaintiffs getting up to $2,000 each.
The court found the settlement amount “reasonable” and thus weighed in favor of granting the preliminary approval.
In terms of revenue, the wearables, home, and accessories segment, which includes Apple Watch, netted the company more than $8 billion in the recent quarter ending June 29.
In addition to the $20 million settlement lawsuit, Apple has faced other legal troubles related to its watches.
The ITC eventually prevented the company from importing Apple Watches with blood oxygen sensors. Apple later secured an injunction that blocked the ITC ruling from coming into effect. But in January this year, a federal appeal court lifted this injunction, allowing the ban to again take effect.
Beginning Jan. 18, Apple no longer included the ability to measure blood oxygen levels in Apple Watches sold in the United States, according to the company website.
A key allegation in the lawsuit relates to Apple “diminishing the functionality of non-apple smartwatches,” according to a March 21 DOJ press release.
“Apple has limited the functionality of third-party smartwatches so that users who purchase the Apple Watch face substantial out-of-pocket costs if they do not keep buying iPhones.”