OAKLAND, Calif. (CN) — A federal judge in Oakland granted on Friday preliminary approval for a class action settlement for $20 million over claims that multiple series of Apple Watches have a defect that could potentially harm owners.
The settlement, besides lightening the tech giant’s pocketbook, concludes a three-year legal battle that will ultimately release the company from all future liabilities related to the defect.
The move appears to be a victory for the plaintiffs, whose attorneys stated in their motion to approve the settlement that going to trial would run the risk of recovering much less money for the harm done to their clients or even none at all.
The $20 million settlement is expected to cover attorney’s fees plus incentive payments to the lead plaintiff, named plaintiffs of the case and payments to class members.
Class members who make a payment selection by the response deadline will receive $20 for each relevant device they own. If there is more than $50,000 remaining in the settlement fund after all payments have been issued, class members may receive up to $50 per covered device.
In their agreement, the parties also proposed that any leftover funds will be donated to the Rose Foundation’s Consumer Products Fund.
U.S. District Judge Haywood S. Gilliam wrote that he thought the terms appeared fair and reasonable.
The Obama-appointed judge had little to gripe about in his 15-page order, only noting a few inconsistencies in the full class notice that needed to be corrected by a final fairness hearing.
For example, the full class notice states that the attorneys may ask the court for an award of attorneys’ fees of up to 30% of the settlement fund, but in their motion, they say they will apply for no more than $5 million, or 25%.
Gilliam stressed the importance of accurately reflecting this information to class members but found that with these minor changes, the proposed class notice would have enough to conform with court requirements.
The plaintiffs’ counsel is currently asking for $5 million in attorneys’ fees, $5,000 for the lead plaintiff and up to $2,000 for each of the remaining named plaintiffs. The attorneys’ fees will ultimately be decided at the settlement’s final fairness hearing.
The court has directed parties to meet within seven days of its order to confer and file a proposed schedule for future events and deadlines, including the final fairness hearing.
The plaintiffs from several different states filed the California class action in December 2021 on behalf of all Apple Watch customers, claiming that several First Generation and SE series watches contain “an undisclosed and unreasonably dangerous safety hazard.”
They claimed that sudden swelling of the watch batteries can cause the screen to detach, shatter, or crack, “exposing its razor-sharp edges and leading to operational failure of the watch and/or personal injuries.”
They said Apple did not give sufficient space within the watch to prevent the screen issue and watches have injured class members, creating a “substantial and material risk of serious injury, including lacerations, cuts, abrasions, and other injuries.”
Claims included violations of California’s unfair competition, consumer and warranty laws, federal warranty law and fraud by omission under various state laws.
The plaintiffs have walked a long road to get to this settlement. After the initial 2021 complaint and an amended complaint in 2022, the lawsuit survived a motion to dismiss in 2023. The plaintiffs moved to approve the settlement in August and Apple did not oppose the motion.
Attorneys representing both sides did not respond to requests for comment by press time.