Feeds

Apple, AT&T settle 'bait and switch' iPad 3G data plan lawsuit

Forty bucks may be waiting for you, aggrieved iPad owner

Next gen security for virtualised datacentres

Apple and AT&T have agreed to a proposed settlement of a class-action lawsuit that may drop forty bucks into your pocket should you have purchased a 3G-enabled iPad before June 7, 2010.

The lawsuit, filed on June 9, 2010, accused Apple and AT&T of using bait-and-switch chicanery when selling those iPads, promising unlimited data plans that would, the complaint alleged, "always be available at the customers option" – but such plans were eliminated by AT&T on June 7, 2010.

"Apple and AT&T announced this policy change," the complaint explained, "within just weeks after selling hundreds of thousands of 3G-enabled iPads upon the product's initial launch."

The complaint also noted that the 3G-enabled iPads in question "cost customers approximately $130 more (before tax) than an equivalent iPad without 3G capability."

The terms of the proposed settlement won't recoup that entire amount, however. Agreed to last Thursday, the Apple half of the settlement will "pay $40, in the form of a check," to anyone who purchased a 3G iPad on or before June 7, 2010, if they "submit a timely and valid claim."

For its part, AT&T will provide folks who purchased a 3G-enabled iPad but didn't sign up for a data plan with a 5GB data plan at a discounted price of $30 – a $20 discount – for up to one year. If AT&T should reduce its 5GB data plan price, the discount will remain at $20. If the claimant no longer owns the iPad in question, they can use the discount on a later-generation iPad.

Both Apple and AT&T will be required to notify all affected iPad purchasers by either email or snail mail, and a "Settlement Website" and toll-free telephone number will be set up to handle claims.

"Both settlements are the product of arms-length negotiations between the parties and their experienced counsels," the Notice of Motion reports, "who were well-informed about the legal and factual issues involved."

Those experienced counsels, the settlement states, may receive up to $1.5m from Apple and up to $250,000 from AT&T. The five plaintiffs in the case will each receive "up to $1,000 each, to compensate them for their commitment on behalf of the class members in these cases." ®

The essential guide to IT transformation

More from The Register

next story
Hello, police, El Reg here. Are we a bunch of terrorists now?
Do Brits risk arrest for watching beheading video nasty? We asked the fuzz
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Munich considers dumping Linux for ... GULP ... Windows!
Give a penguinista a hug, the Outlook's not good for open source's poster child
EU justice chief blasts Google on 'right to be forgotten'
Don't pretend it's a freedom of speech issue – interim commish
Detroit losing MILLIONS because it buys CHEAP BATTERIES – report
Man at hardware store was right: name brands DO last longer
Snowden on NSA's MonsterMind TERROR: It may trigger cyberwar
Plus: Syria's internet going down? That was a US cock-up
UK government accused of hiding TRUTH about Universal Credit fiasco
'Reset rating keeps secrets on one-dole-to-rule-them-all plan', say MPs
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
e-Borders fiasco: Brits stung for £224m after US IT giant sues UK govt
Defeat to Raytheon branded 'catastrophic result'
Yes, but what are your plans if a DRAGON attacks?
Local UK gov outs most ridiculous FoI requests...
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.