Apple was named as a defendant in a class action lawsuit against it which claimed that the company had installed faulty moisture indicators in iPhones and iPods. These faulty indicators are likely to be easily triggered by moisture during day to day use. This in turn voids the customers warranty, meaning that even if their device has not suffered water damage that is excluded under warranty, their warranty claims would be denied by Apple. The court has ruled that these indicators are indeed faulty and Apple has now agreed to pay $53 million in damages.

Documents filed in a San Francisco federal court reveal that customers may get $300 as damages depending on the model of the device they own. Those iPhone owners who were denied warranty claims due to this before 31st December 2009 and those iPod touch owners denied warranty before June 2010 are eligible to claim settlement funds. During the course of this case Apple continued to deny these allegations and kept saying that these water damage indicators were reliable. Nevertheless, those who were genuinely wronged can now have a small piece of this $53 million pie.

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