Apple to shell out $53 million in class action pay day for iPhone and iPod owners turned down for replacements of 'water damaged' devices

Hundreds of thousands could get $200 settlement after owners under warranty were denied servicing from the tech giant due to faulty 'liquid contact indicators'

The 3M company, but not Apple, admitted their technology may have been to blame in the case that stretches back to the earliest iPhones and iPods



After years of iPhone and iPod owners getting turned away for replacements because their devices indicated water damage, and thus a voided warranty, Apple has agreed to pay out $53 million in a class action suit.



Settled: Apple has agreed to pay $53 million in class action suit that said it unfairly denied customers replacement devices

The settlement could affect hundreds of thousands of customers who brought their malfunctioning devices to Apple, only to be told they were no longer covered by warranties because a little sticker inside had turned a shade of pink or red.



No matter the problem, the company refused to replace any device with a pink or red sticker and must now pay what amounts to about $200 per claimant in the suit.

Only owners of original, 3G, and 3GS iPhones as well as first, second, and third generations of the iPod Touch are affected by the settlement.



So, who’s to blame? Not us, says Apple.



Signed Wednesday, the tech giant admitted to no wrongdoing in the settlement.



The company that makes the ‘Liquid Indicator Strips,’ meanwhile, said their product may have been the culprit in so many voided warranties.



Though Apple owns the patent to the strips, maker 3M indicated that humidity and not water contact could have turned some of the white stickers pink, misleading customer service representatives who examined the devices.



Apple, nonetheless, may have learned of the issue years ago.

Denied: For years, Apple routinely voided warranties to customers whose devices indicated water damage

According to a report in The Atlantic, the company ‘quietly tweaked’ its water damage policy in 2011 to be a little more giving.



The policy now indicates that devices with an activated LCI may still be replaced ‘if a customer disputes’ that water made contact with the device as long as there are no signs of corrosion.



However, the policy stopped short of faulting the indicator strips, which the policy says ‘are designed not to be activated by temperature or humidity that are within the product's operating requirements.’



That means newer devices were not covered in the suit, payouts for which could go up or down depending on number of claims submitted.