Powerbeats 2 Settlement, Apple Will Pay $9.75M for Design Defects

Powerbeats Settlement

Powerbeats Settlement

US residents who bought a pair of wireless Powerbeats 2 earbuds before August 7th, could soon get a payout because the device is allegedly “defective.” Apple has agreed to pay out $9.75 million for this Powerbeats settlement, after it was accused of falsely advertising the so-called “shoddy” earbuds as “sweat & water resistant” and “built to endure.” Plaintiffs say that these claims weren’t true, and that the earbuds would stop holding their charge after “minimal use.”

Apple denies each and every one of the allegations of unlawful conduct, any wrongdoing, and any liability whatsoever, and no court or other entity has made any judgment or other determination of any liability. Apple further denies that any Class Member is entitled to any relief and, other than for settlement purposes, that this Action is appropriate for certification as a class action.

The Court has not decided that the Representative Plaintiffs or Apple should win this Action or any of the other pending actions. Instead, both sides agreed to a Settlement. That way, they avoid the cost of a trial, and the Class Members will receive relief now rather than years from now, if at all.

Who’s Eligible?

The Court has decided that everyone who fits this description is a Class Member for purposes of the proposed Settlement:

  • All persons residing in the United States who purchased Powerbeats 2 earphones not for resale before August 7, 2020.

The Settlement Class excludes employees, officers and directors of Apple, members of the immediate families of the officers and directors of Apple, and their legal representatives, heirs, successors or assigns, and any entity in which they have a controlling interest. Also excluded from the Class are the Court, and the Court’s staff, as well as their heirs, successors or assigns and all persons who submit valid requests to be excluded from the settlement.

Related: See All Settlement Rebates Here

Settlement Payout

The Net Settlement Amount is the amount remaining from the total $9,750,000 (the “Gross Settlement Amount”) to be funded by Apple, minus the attorneys’ Fees and Expense Award to be paid to Class Counsel, the award to Representative Plaintiffs for bringing this Action, and the costs of the Settlement Administrator for providing notice to the Class of the Settlement and administering the Settlement (which are expected to total approximately $3,735,500).

The actual amount of the cash settlement distributed to each Class Member will be determined by whether the Claimant provides the Settlement Administrator a Proof of Purchase, whether Apple has a record of the Class Member obtaining a warranty repair or replacement on a Powerbeats 2, and the number of qualifying Claims approved by the Settlement Administrator. Cash settlements are limited to one per household.

The payout for each class member will be made in a point basis. The value of each point is based on the amount of claims.

Number of Proofs of Purchase or Records of Warranty Repairs or Replacements Points
  • No Proof of Purchase
  • No record of warranty repair or replacement
1 point
  • No Proof of Purchase
  • Record of one warranty repair or replacement
2 points
  • One valid Proof of Purchase
  • No record of warranty repair or replacement
2 points
  • One valid Proof of Purchase
  • Record of one warranty repair or replacement
2 points
  • Two valid Proofs of Purchase
  • No record of warranty repair or replacement
4 points
  • One valid Proof of Purchase
  • Record of three successive warranty repairs or replacements
6 points

If the Court awards Plaintiffs’ Counsel the full amount of attorneys’ fees and costs that they seek, if there are 150,000 points claimed, each Authorized Claimant will receive approximately $40.10 per point he or she claimed. If there are such 300,000 points claimed, each Authorized Claimant will receive approximately $20.04 per point he or she claimed. The most a Class Member can receive is $189, unless he or she submits multiple valid Proofs of Purchase; then the most that Class Member could receive would be $189 per Proof of Purchase.

Must file a claim by November 20, 2020.

Related: Read all news about lawsuits and settlements


Settlement Details


 

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