Apple settles 1st generation iPod nano ‘scratch’ suit for $22.5 million

“Four years in the making, it looks like those early adopters of the Apple iPod nano will be getting a little relief, in the form of a $22.5 million class-action suit filed against the company because the devices scratched too easily,” Jim Goldman reports for CNBC.

“The settlement calls for Apple to set aside that $22.5 million, and while nano users who apply for an Apple refund stand to receive at most $25, the rainmakers in the case will bank $4 million for their efforts,” Goldman reports. “The suit itself… centers on the first-generation iPod nano… Apple confirmed the settlement this morning but had no comment beyond that.”

“According to a notice sent out to nano owners this week, ‘Apple has agreed to provide a cash settlement fund of $22.5 million’ and for those consumers who did not receive a “slip case from Apple when you purchased your iPod nano, you may be entitled to a cash payment of $25. If you received a slip case, you may be entitled to a cash payment of $15,” Goldman reports.

“Pacific Crest Securities Apple analyst Andy Hargreaves… offers a little perspective, by pointing out that with $28 billion in cash in the bank, the $22.5 million works out to less than 1/10th of 1 percent of Apple’s available cash. A pittance for the company, but a juicy settlement for a law firm,” Goldman reports.

Full article here.

MacDailyNews Note: The iPod nanos covered by the settlement are the uncoated First Generation iPod nanos. These iPod nanos were first sold beginning in September 2005, and have a black or white plastic front and a stainless steel back. Some but not all iPod nanos were uncoated. Some iPod nanos were coated beginning in approximately December 2005. More info:

Apple’s iPod nano is currently in its 4th generation (4G) and was introduced on September 9, 2008.

[Thanks to MacDailyNews Reader “JES42” for the heads up.]

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.