iPhone 7 Settlement Case: Apple Agrees To Pay $35 Million to Victims of 'Loop Disease'

Apple has agreed to pay $35 million for a settlement regarding the iPhone 7's controversial "Loop Disease" caused by a defective chip inside the device.

The settlement agreement, made last year, has prompted the tech giant to start notifying eligible customers by email about the money they are expected to receive. One can receive the payment if a United States resident owned an iPhone 7 or iPhone 7 Plus between Sept. 16, 2016, and Jan. 3, 2023.

Apple's Reaches $35 Million Over "Loop Disease"

(Photo : Scott Olson/Getty Images)
Apple has agreed to pay $35 million for a settlement deal over the controversial "Loop Disease" that plagued the tech giant's iPhone 7 and iPhone 7 Plus devices.

They should also have reported audio issues covered by the settlement with the company and/or paid Apple out of pocket to have their devices repaired or replaced due to the issues.

The people who did not receive a notice but believe they should be eligible can submit a claim and were told to email info@smartphoneaudiosettlement.com. The deadline for those eligible to select a payment method or opt-out is June 3, as per MacRumors.

The settlement notice website can provide more details about the settlement agreement. The people who paid the tech giant out of pocket for their devices can receive up to $349 while others could receive up to $125.

The situation comes after Apple faced a lawsuit in several U.S. states in 2019, with the complaints noting that the tech giant violated consumer protection laws and breached warranties.

Despite Apple's agreement to a settlement, the company has denied any wrongdoing and the court hearing the class action lawsuit has not ruled in favor of either the tech giant or the plaintiffs.

The Loop Disease in question refers to the problem of the affected device models, including disabled speaker buttons during calls and no sound playback in videos or voice memos. The issue was primarily attributed to a defect in the phones' audio chip that allegedly stemmed from inadequate protection of internal components by the devices' casings, according to PCTablet.

Tech Giant's Legal Challenges

The settlement agreement over Apple's iPhone 7 devices marks a significant turn in consumer rights protection as it holds tech giants accountable for product defects. The deal also provides a channel for affected consumers to recoup some of their losses due to the chip issue.

This settlement also comes after Apple sent out iPhone "Batterygate" settlement payments to affected consumers. The tech giant had previously agreed to pay up to $500 million over charges that it intentionally slowed down older iPhones.

The class-action lawsuit was first filed in 2020 and the people involved can expect to receive payments soon. In 2017, owners of the company's older models noticed that their devices were running slower and their batteries were draining faster.

That same year, the company admitted that its iOS software had slowed down the performance of older iPhones. However, Apple said there was a reason for this: as the lithium-ion batteries aged, they did not hold a charge as well and could unexpectedly shut down, which was countered by slowed performance, said CNET.