Friday April 19, 2019
Home Lead Story Lawsuit alleg...

Lawsuit alleges Apple violated consumer fraud laws which was filed in Chicago

0
//
Iphone users are unhappy with apple
FILE - A customer is seen setting up his new iPhone 7 Plus (R) as he switches from the iPhone 6 at an Apple Store in Chicago, Illinois, during the release of the Apple iPhone 7, Sept. 16, 2016. VOA

IPhone owners from several states sued Apple Inc. for not disclosing sooner that it issued software updates deliberately slowing older-model phones so aging batteries lasted longer, saying Apple’s silence led them to wrongly conclude that their only option was to buy newer, pricier iPhones.

The allegations were in a lawsuit filed Thursday in Chicago federal court on behalf of five iPhone owners from Illinois, Ohio, Indiana and North Carolina, all of whom say they never would have bought new iPhones had Apple told them that simply replacing the batteries would have sped up their old ones. The suit alleges Apple violated consumer fraud laws.

A similar lawsuit was filed Thursday in Los Angeles. Both suits came a day after Apple confirmed what high-tech sleuths outside the company already observed: The company had deployed software to slow some phones. Apple said it was intended as a fix to deal with degraded lithium-ion batteries that could otherwise suddenly die.

“Our goal is to deliver the best experience for customers, which includes overall performance and prolonging the life of their devices,” an Apple statement said. It said it released the fix for iPhone 6, iPhone 6s and iPhone SE and later extended it to iPhone 7. Apple didn’t respond to a message Friday seeking comment.

The Chicago lawsuit suggests Apple’s motive may have been sinister, though it offers no evidence in the filing.

“Apple’s decision to purposefully … throttle down these devices,” it says, “was undertaken to fraudulently induce consumers to purchase the latest” iPhone.

Plaintiff Kirk Pedelty, of North Carolina, contacted Apple as his frustration grew. However, the lawsuit says: “Nobody from Apple customer support suggested that he replace his battery to improve the performance of his iPhone. … Frustrated by slowdowns and intermittent shutdowns of his iPhone 7, Pedelty purchased an iPhone 8.”

The lawsuit seeks class-action status to represent thousands of iPhone owners nationwide.

Creative Strategies analyst Carolina Milanesi said she believes the tech giant was seeking to help consumers extend the lives of the older phones — though it would have been better to disclose what it was doing and why right away.

“Even if you are trying to do something good for your customers, it is going to be perceived as you are sneaking around behind their backs if you don’t tell them about it first,” she said. (VOA)

Next Story

Apple Accused of Fraud for Hiding Dop in iPhone Sales: Report

Apple’s disclosures in January caused its stock price to fall by more than $15 per share, or more than 9 percent

0
Apple, women
The Apple logo is shown outside the company's Worldwide Developers Conference in San Francisco, California. VOA

A lawsuit filed in the US has alleged that Apple violated the country’s Securities Exchange Act by hiding a slowdown in the demand for iPhones, especially in China, the media reported.

The City of Roseville employees’ retirement fund filed the suit on Tuesday in Northern California US District Court, The Mercury News published from San Jose reported.

The lawsuit claimed that Apple knew in November its iPhone sales were hit, but refrained from revealing it to investors then, leading to economic loss for investors.

The lawsuit seeks class-action status, to bring in everyone who bought Apple common stock between November 2, 2018 and January 2, 2019, the report said, adding that the plaintiff is seeking a jury trial and unspecified damages.

Apple in November said it had gone into the holiday season with its “strongest lineup of products and services ever,” according to the suit.

But in reality, the US trade war with China was hurting the iPhone sales and Apple and its CEO Tim Cook were aware of it in November, claimed the lawsuit which said that Apple disclosed the “true state” of its first quarter iPhone sales only in January.

apple
Apple CEO Tim Cook speaks during a data privacy conference at the European Parliament in Brussels. VOA

The suit alleged that Apple and Cook’s “materially false and misleading statements” in November propped up the company’s stock, “which continued to trade at artificially inflated prices”.

But in January, Apple lowered its revenue guidance for fiscal 2019 first quarter, which ended on December 29.

In a letter to investors, Cook said that the company now expects a revenue of approximately $84 billion, down from the $89 to $93 billion it had previously projected.

Also Read- Harassment Prevention at Workplace is Very Important Trend for Future: LinkedIn

Cook acknowledged that the revenue shortfall in its guidance was partly due to China’s trade tensions with the US. The slowdown in the Chinese economy also impacted its revenue, he said.

Apple’s disclosures in January caused its stock price to fall by more than $15 per share, or more than 9 percent, the suit claimed. (IANS)