iPhone 4 Defect Reaches Settlement

SAN FRANCISCO (CBS13) - When the iPhone 4 went on sale in June 2010, it was an instant hit, selling nearly 2-million units in the first three days. But the phone's new design instantly sparked lawsuits claiming the phone was defective because of reception issues.

"I think when you're grabbing it with your whole hand, you're covering up some part of the antenna and that's the part that's messing you up," said Rachel Newlin, San Francisco resident.

"People started calling this phenomenon "antennagate," which was kind of like Watergate or any other big scandal, primarily because Apple didn't really talk about it for a couple of weeks," said Josh Lowensohn, CNET staff writer.

To appease angry customers, Apple began offering free cases to solve the problem. But still, the lawsuits persisted and just last month, a settlement was reached and Apple agreed to pay out fifteen dollars to qualified users.

"In terms of size, this covers an estimated 25-million people in the class, so, times fifteen dollars per bumper. That's about 375-million dollars," said Lowensohn.

"They should have tried to take care of it before it ever happened, before they released it. But at least they're doing something," said Newlin.

The newly launched webpage, iPhone4settlement.com explains the rules of eligibility. Claims need to be filed by August 28th.