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Apple agrees to pay states $113M for iPhone throttling

Apple has reached a $113 million settlement agreement with the Wisconsin Attorney General Josh Kaul and a coalition of other state in a case involving allegations that the tech giant was throttling iPhone speeds.

The attorneys general accused Apple of using a software update to slow down iPhones that were having battery troubles. The defect was causing phones to unexpectedly shut down. Rather than disclose the situation or replace the batteries, the states said Apple hid the defect from consumers and chose to by using software update that would keep the phones from turning off.

The software update, according to the attorneys general, resulted in more sales for Apple as people began replacing their slowed-down iPhones.

Under the agreement, announced on Nov. 18, Apple will pay $113 million to more than 30 states. Wisconsin will receive about $3.29 million of that sum.

In addition, Apple agreed to use its website to keep customers informed about their iPhones’ batteries, performance and power management.

Apple also recently entered a proposed settlement of a class-action litigation related to iPhone throttling. As a result, it will pay out as much as $500 million in customer restitution.

This restitution doesn’t relate to a civil action filed by the State of Wisconsin. The requirements of 2017 Wis. Act 369 do not apply.

Mark Brnovich, Arizona attorney general; Leslie Rutledge, Arkansas attorney general; and Curtis Hill, Indiana attorney general, oversaw the multistate investigation into Apple’s conduct.

About Michaela Paukner, mpaukner@wislawjournal.com

Michaela Paukner is the legal reporter for the Wisconsin Law Journal. She can be reached at (414) 225-1825 or by email at mpaukner@wislawjournal.com.

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