Texas To Receive Millions From Settlement With Apple In iPhone Throttling Case
AUSTIN, Texas (CBSDFW.COM) - Texas will receive millions from Apple after a settlement was reached in a case regarding the throttling of customer's iPhones in 2016, state Attorney General Ken Paxton announced Thursday.
The case involved Paxton and 30 other attorney generals in a multistate investigation in regards to Apple's decision to reduce performance in some iPhones to address unexpected shutdown issues, Paxton's office said in a statement.
According to his office, the attorney generals alleged that Apple discovered battery issues in the iPhones and decided to throttle them rather than disclose the issues or replace the batteries. The attorney generals claimed Apple profited from the issues due to customers buying new phones because their previous ones had reduced performance.
A $113 million settlement was reached between the two sides, with Texas receiving just over $7.5 million.
"I am pleased to announce that Apple is being held accountable for their deceitfulness with consumers and secretive decision not to inform consumers of known issues," Paxton said. "This settlement is a victory for honest business and customers and a stern warning to any companies who attempt to cover their mistakes at the expense of consumer choice."
Paxton's office said the settlement also led to Apple having to provide "truthful information" to customers regarding iPhone battery health, performance and power management on its website.
Apple also entered a proposed settlement of class action litigation that would pay up to $500 million in consumer restitution for the same conduct, Paxton's office said.
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