Frequently Asked Questions
- What is this website about?
- What is this lawsuit about?
- Why is this a class action?
- Why is there a settlement?
- How do I know if I am part of the settlement?
- Are there other exceptions to being included?
- What does the settlement provide?
- What can I get from the settlement?
- How can I get a payment?
- When would I get my payment?
- What am I giving up to get a payment or stay in the Class?
- How do I get out of the settlement?
- Do I have a lawyer in this case?
- How will the lawyers be paid?
- How do I tell the Court that I don’t like the settlement?
- What’s the difference between objecting and excluding?
- When and where will the Court decide whether to approve the settlement?
- What happens if I do nothing at all?
- Are there more details about the settlement?
- How do I get more information?
1. What is this website about?
You may have purchased in the United States a new uncoated First Generation iPod nano for your own use and not for resale. The First Generation iPod nano was sold beginning in September 2005. For convenience, the Apple uncoated First Generation iPod nano will be referred to as the “iPod nano.”
The Court ordered that this website be set up because you have a right to know about a proposed settlement of a class action lawsuit, and about your options, before the Court decides whether to approve the settlement. If the Court approves it and after objections and appeals are resolved, an administrator will make the payments that the settlement allows.
This website explains the lawsuit, the settlement, your legal rights, what benefits are available, who is eligible for them, and how to get them.
The Court in charge of the case is the California Superior Court for the County of Los Angeles, and the lawsuit is known as In re iPod nano Cases, Case No. BC 342057, JCCP No. 4469. For convenience, this will be referred to as “the Lawsuit.” The people who sued are called “Plaintiffs,” and the company they sued, Apple Inc. (formerly known as Apple Computer, Inc.), is called “Apple” or “the Defendant.”
2. What is this lawsuit about?
In the Lawsuit, Plaintiffs claim that the First Generation iPod nano contained a design or manufacturing defect that resulted in excessive scratching. Plaintiffs also claim that Apple failed to disclose the scratching issue and breached the warranties associated with the iPod nano.
Similar class actions were filed in multiple federal courts. By orders of the Judicial Panel on Multi-District Litigation, the federal cases were coordinated before the United States District Court for the Northern District of California. These cases collectively are captioned In re iPod nano Class Settlement, No. M-06-1754-RMW, MDL No. 1754 (the “MDL Action”). These cases will be dismissed without prejudice if the Court approves the settlement.
Apple denies all allegations in the Lawsuit and in the MDL Action, and has asserted many defenses. Apple is entering into this settlement to avoid burdensome and costly litigation. The settlement is not an admission of wrongdoing or an indication that any law was violated.
3. Why is this a class action?
In a class action, one or more people, called Class Representatives (in this case Carey Calado, Roxanne Povio, Clark Sioson, John Valencia, Samuel Allred, Hurr Baqri, Jason Moschella, David Singer, Eli Kahan, Leonard Rappel, and Danny Williamson), sue on behalf of people who have alleged similar claims. All these people are the Class or Class Members. One court resolves the issues for all Class Members, except for those who exclude themselves from the Class. California Superior Court Judge Carl J. West is in charge of this class action.
The Court did not decide in favor of Plaintiffs or Defendant. Instead, both sides agreed to a settlement. That way, they avoid the cost of a trial, and settlement benefits go to the Class Members. The Class Representatives and their attorneys think the settlement is best for the Class Members.
5. How do I know if I am part of the settlement?
Judge West has decided that everyone who fits this description is a Class Member: All persons and entities who purchased in the United States a new uncoated iPod nano for their own use and not for resale.
The settlement covers uncoated First Generation iPod nanos. These iPod nanos were first sold beginning in September 2005, and have a black or white plastic front and a stainless steel back. The Serial Number appears on the stainless steel backplate of your iPod nano. To be entitled to a payment under the settlement, you must have experienced scratching of your iPod nano that impaired your use or enjoyment of your iPod nano and submitted a claim.
6. Are there other exceptions to being included?
The Settlement Class does not include Apple; any entity in which Apple has a controlling interest; Apple’s directors, officers, and employees; Apple’s legal representatives, successors, and assigns; and all persons who validly request exclusion from the Settlement Class.
7. What does the settlement provide?
Apple has agreed to provide a total cash settlement fund of $22.5 million (the “Fund”) in full settlement of the claims of the Settlement Class. The Fund shall include all payments or other consideration to the Settlement Class; Class Counsel’s attorneys’ fees and expenses; any incentive fees to named Plaintiffs; and all administration costs and costs of notice. Apple shall not be obligated to pay any additional amounts of any kind in connection with this settlement. Apple has no ability to get back any part of the Fund. The settlement distribution process will be administered by an independent claims administrator (“Claims Administrator”) approved by the Court.
8. What can I get from the settlement?
The settlement provides for different payment amounts depending on whether your iPod nano was shipped with or without a slip case, and also depending on the total number of valid claims that are made. To be entitled to a payment under the settlement, you must have experienced scratching of your iPod nano that impaired your use or enjoyment of your iPod nano. After payment of all notice and administration costs, Plaintiffs’ counsel’s attorneys’ fees and expenses, and any incentive awards to named Plaintiffs, all monies remaining in the Fund (“Remaining Fund”) will be distributed as follows:
Tier One: Payments of $25 will be distributed to Settlement Class Members who did not receive a free slip case from Apple with their original iPod nano purchase(s), and file complete and valid Claim Form(s).
Tier Two: Payments of $15 will be distributed to Settlement Class Members who received a free slip case from Apple with their original iPod nano purchase(s), and file complete and valid Claim Form(s).
If the total number of valid Tier One and Two claims is less than the Remaining Fund, the Remaining Fund shall be prorated among the Settlement Class Members such that the cash payment to each Settlement Class Member shall be increased by the same percentage by which the Remaining Fund is undersubscribed; provided, however, that no Settlement Class Member shall receive an amount in excess of 150% of the amount for that Settlement Class Member’s Tier specified in the paragraphs above.
If the total number of valid Tier One and Two claims is in excess of the Remaining Fund, the Remaining Fund shall be prorated among the Settlement Class Members such that the cash payment to each Settlement Class Member shall be reduced by the same percentage by which the Remaining Fund is oversubscribed.
Any monies in the Remaining Fund after the payments described above will be distributed to a charity(ies) to be proposed by Plaintiffs’ Counsel and approved by the Court. Apple may object to any such proposed charity(ies) and propose an alternative(s) to the Court.
You are limited to one payment per iPod nano. Please note that the deadline for filing a claim has passed.
To qualify for a payment, you must have sent in a Claim Form. Please note that the deadline for filing a claim has passed.
10. When would I get my payment?
The appeal has been resolved and the Settlement became effective on December 23, 2009.
Payments to approved claims will be mailed starting in April of 2010. Due to the large volume of claims, payments will continue to be made until June 2010. Please be patient during this process. If your Claim Form was not approved, you will receive notification of this also around this time.
11. What am I giving up to get a payment or stay in the Class?
Unless you excluded yourself, you are staying in the Class, and that means that you can’t sue, continue to sue, or be part of any other lawsuit against Apple about the legal issues in this case. It also means that all of the Court’s orders will apply to you and legally bind you. If you sign the Claim Form, you will agree to a “Release of Claims,” included with the Claim Form, which describes exactly the legal claims that you are giving up.
12. How do I get out of the settlement?
The deadline for filing a Request for Exclusion to opt out of the Settlement has passed. Requests for Exclusion are no longer being accepted.
13. Do I have a lawyer in this case?
The Class is represented in this case by Steve W. Berman, Reed R. Kathrein, Lee M. Gordon, and Elaine T. Byszewski of Hagens Berman Sobol Shapiro LLP, and Bruce L. Simon, Clifford H. Pearson, and Esther L. Klisura of Pearson Simon Warshaw & Penny LLP, as Co-Lead Counsel for the Class, and other firms acting on behalf of the Plaintiffs. Together, these lawyers are called Plaintiffs’ Counsel. You will not be charged for these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense.
14. How will the lawyers be paid?
The Court approved an award of attorneys’ fees of $4,500,000 from the Fund and an award of litigation expenses of $135,000 from the Fund. The amount of fees and expenses requested was supported by the recommendation of a neutral arbitrator.
The Court approved an award of $2,500 for each of the named Plaintiffs in the Lawsuit, with the exception of two named Plaintiffs who were awarded $500. These awards were based on the contribution to the case as well as the time and expense involved in participating in the lawsuits.
15. How do I tell the Court that I don’t like the settlement?
The deadline for objecting to the Settlement has passed. Objections are no longer being accepted.
16. What’s the difference between objecting and excluding?
Objecting is simply telling the Court that you don’t like something about the settlement. You can object only if you stay in the Class. Excluding yourself is telling the Court that you don’t want to be part of the Class. If you exclude yourself, you have no basis to object, because the case no longer affects you.
17. When and where will the Court decide whether to approve the settlement?
The Court held a Fairness Hearing on April 28, 2009 at 1:30 p.m., at the Superior Court of California for the County of Los Angeles, located at the Central Civil West Courthouse, Courtroom 311, 600 South Commonwealth Avenue, Los Angeles, California 90005. An appeal was filed but has since been resolved. The Settlement became effective on December 23, 2009.
18. What happens if I do nothing at all?
If you do nothing, you’ll get no money from this settlement. But, unless you exclude yourself, you won’t be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against Apple about the legal issues in this case, ever again.
19. Are there more details about the settlement?
This website summarizes the proposed settlement. More details are in a Settlement Agreement. Copies of the Settlement Agreement and the pleadings and other documents relating to the case are on file at the Los Angeles Superior Court, and may be examined and copied at any time during regular office hours at the Office of the Clerk, Los Angeles Superior Court, Central Civil West Courthouse, 600 South Commonwealth Avenue, Los Angeles, California 90005.
20. How do I get more information?
You may write to the Claims Administrator at the address below, or call 1-888-232-3395. Questions may not be directed to the Court.
P.O. Box 6177
Novato, CA 94948-6177