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Thu, Nov 20, 2008 - 10:22 PM EST  —  AAPL: 80.49 (-5.80, -6.72%)  |  NASDAQ: 1316.12 (-70.30, -5.07%)

Apple, CEO Jobs, AT&T sued over iPhone price cut, rebate
Friday, September 28, 2007 - 03:54 PM EST

"Apple Inc., along with its chief executive and exclusive U.S. iPhone wireless partner AT&T, have been hit with a new lawsuit from a disgruntled customer who charges the trio with a variety of offenses stemming from the recent iPhone price cut," Kasper Jade reports for AppleInsider.

"In the suit, filed Sept. 24 in the United States District Court for the Eastern District of New York, Queens resident Dongmei Li accuses the parties of price discrimination, underselling, discrimination in rebates, deceptive actions, and other wrongdoings for their role in the Sept. 5th price drop on iPhone, which saw the handset's price tag slashed an unprecedented $200 less than two months after its debut," Jade reports.

"She, like thousands of others, the suit claims, is now the victim of price discrimination in that she cannot resell her iPhone for the same profit as customers who purchased the device after price drop. Similarly, she cannot trade up to 8GB model she had initially hoped to obtain and is now left with a product that has been discontinued," Jade reports. "Li also feels cheated by Apple's rebate policy because she was only offered a $100 store credit towards a future Apple store purchase when those customers who bought the same iPhone within a two week window period immediately preceding the cut received the full $200 refund under the company's price protection policy."

"'Market conditions did not require Apple to change its price,'" Li's attorney, C. Jean Wang of Wang Law Offices, PLLC wrote in the filing. 'iPhone was selling very well because Apple's stocks were increasing since August 16, 2007 and rose as high as $144.16 on September 4, 2007, the day before Apple announced that it was cutting the price of iPhone,'" Jade reports. "Li is requesting compensatory damages in the amount of $1 million, punitive damages in the amount to be determined at trial, and a court order that she is entitled to 'threefold her damages, the costs involved in maintaining this action, and attorney's fees.'"

Full article here.

[Thanks to MacDailyNews Reader "Gman" for the heads up.]

MacDailyNews Take: We want a 73-foot tall talking pink bunny, but that doesn't mean we're going to get that, either. However, the chance we'll get our wish significantly outweighs Li's, since her attorney seems to think that stock price performance has some meaningful relationship to iPhone unit sales. Apple's lawyers likely got a good laugh over this one before heading home for the weekend.

Did somebody say "tort reform?"

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Reader Feedback: ( = registered)

Sep 28, 07 - 02:59 pm Comment from: tclash

Oh for f*uck's sake

Sep 28, 07 - 03:04 pm Comment from: Vlad

1 million in compensation? For what, emotional damages?

Sep 28, 07 - 03:07 pm Comment from: tclash

\"C. Jean Wang of Wang Law Offices\".

Is this anything like Rob Enderle of The Enderle Group?

[cough] A group of two! [/cough]

Sep 28, 07 - 03:08 pm Comment from: Ecky Thump

If the store credit was so bad that a lawsuit is called for, everyone participating th the suit should forfeit theirs and take their chances with the lawyers.
The lawyers, BTW, will clean up, while the whiners *might* end up with a $10.00 gift card.
Go ahead, make my day

Sep 28, 07 - 03:08 pm Comment from: RePlay

Somebody pass me a 2 x 4… I feel the need to dispense some common sense.

Sep 28, 07 - 03:09 pm Comment from: Dave Smith

sue sue sue sue sue so sue me.

my titanium lappy is now obsolete. i think i should sue apple for the price drop from a few years ago.

makes complete sense. the same with my car.

Sep 28, 07 - 03:09 pm Comment from: ken1w

How do you get $1 million based on a price difference of (at most) $200? Emotional distress?

She was apparently OK with paying $499 for a 4GB model when she bought it. If Apple did not lower the price, she would continue to be OK with that price on September 5th. But Apple lowered the price, so she is actually up a $100 credit at the Apple Store; she's not out $200 because that's money already spent.

Crazy people...

Sep 28, 07 - 03:10 pm Comment from: I\'m tclash

Dongmei Li needs a Li-ttle spanking.

Sep 28, 07 - 03:11 pm Comment from: Metryq

Tort! I am so sick of this crap.

Sep 28, 07 - 03:11 pm Comment from: Tim Rosencrans

Let's see $499 for iPhone 4g
less  restocking fee $75
$424 less $399 for new iPhone 8g
thats $25

She is suing because Apple will pay her $25 if she returns her old phone and gets a new phone.

Huhhhhhzhzhzhzhzh!!!!!!!!!

Sep 28, 07 - 03:11 pm Comment from: Dongmei

Uh Huh Huh You said Dongmei

Sep 28, 07 - 03:12 pm Comment from: wings2sky

What a country! What a company!
Only Apple could be sued for dropping prices! I think they should be sued for adding new features. I think we ought to sue everyone for adding new features! That means MS is safe!

Sep 28, 07 - 03:14 pm Comment from: Twisted Mac Freak

I vote for the giant bunny. Let's all get really baked first.

Sep 28, 07 - 03:14 pm Comment from: LOL

ONE MILLION?!! For what? So she can get an education?? Okay, that's believable. Someone needs to be educated here and by the shear stupidity of this lawsuit it is going to take more than a million to educate this dumb rock of human being. SO SICK AND TIRED OF CLUELESS PEOPLE.

Can we just ship them off the planet? Seriously. We all have better things to do than end up paying for this stupid lawsuit through increased pricing.

Sep 28, 07 - 03:16 pm Comment from: tclash

^ Hey LOL, you IDIOT!

The word is SHEER, not SHEAR.

Talk about stupidity.

Sep 28, 07 - 03:17 pm Comment from: NSFY

Missed opportunity.
If she had left her iPhone at the dry cleaners, she could have sued for hundreds of millions of dollars. Keep up people.

Sep 28, 07 - 03:19 pm Comment from: Moo

This is why our legal system needs to adopt a "loser pays" policy.

Notice the word 'loser' contains just a single 'o'.

Sep 28, 07 - 03:19 pm Comment from: tclash

Kasper Jade.

Dongmei Li.

C. Jean Wang.

Sounds like the cast party for an Asian chopsocki flick.

- tclash . . . OUT!

Sep 28, 07 - 03:23 pm Comment from: Larry tate

How has our country (world) gotten so f***ed-up???? Tar and feather the lawyers!!!

Sep 28, 07 - 03:24 pm Comment from: DJ

Cull the race of plaintiffs and lawyers like this.

Whatever her hurt, the fact is she bought a product at a price she was happy to pay, and -- importantly -- it presumably continues to do the job she purchased it for.

My old SE/30 still works, but I don't sue Apple because for half the price I can now buy a wango-tango 24" iMac wink

Sep 28, 07 - 03:30 pm Comment from: Winston

In the suit, filed Sept. 24 in the United States District Court for the Eastern District of New York, Queens resident Dongmei Li accuses the parties of price discrimination, underselling, discrimination in rebates, deceptive actions, and other wrongdoings

A Mets fan. That figures! Those blowhards love to complain.

GO PHILLIES!

Sep 28, 07 - 03:30 pm Comment from: shiftOpt k

haaaaaa haa *said like nelson*
her name is Dongmei!

now, that my inner 7th grader has been satisfied, i think this is absolutely ridiculous. i have to agree with Dave Smith… why not sue every auto maker/dealer?? vehicles lose waaay more value in waaay less time (as in the moment you sign the dotted line), but no one seems to be dialing up lawyers over that… they just except it. it just blows my mind that ppl are so greedy and ridiculous… but then, it also blows my mind that i can even be remotely shocked at something like this. "i can't sell my iphone for a profit now." not crap, who buys something, uses it, and expects to sell for a profit?? a dumbarse… that's who. if she bought 30 or 'em and turned around selling 'em on ebay new in the box, that would be a diff story. whatta idiot!

Sep 28, 07 - 03:34 pm Comment from: Shogun

I have to say that I was hoping to sell the 4GB in short order to trade up, and was disgruntled to realize that the hit I'd planned to take had just gotten too big to be reasonable... But didn't Capt. Steve-o say something about don't drive in the technology lane if you don't want to run out of gas, or something like that? Anyway. Whatever. The iPhone rules and since I don't use it for video I figure 4GB will be fine for a long time.

Sep 28, 07 - 03:37 pm Comment from: Henri

Here in Europe you sometimes get the impression that everybody is suing everybody in the US, it seems suing is in someway a national pastime.

Sep 28, 07 - 03:41 pm Comment from: KGB

12(b)(6): failure to state a claim upon which relief can be granted.

Sep 28, 07 - 03:44 pm Comment from: poo

I think she seriously overestimated the resale price on these things... yikes!

Sep 28, 07 - 03:49 pm Comment from: C

It would be great to see Li & co. stuck with the legal bills and punitive damages after this is thrown out. If it did win, the lawyers would likely keep the money while the alleged victims would probably end up with a $10 gift card for the iTunes store.

Sep 28, 07 - 03:50 pm Comment from: Lawsuit Culture

@ Henri - You somtimes get that impression being in the USA!

I hope she loses and has to pay Apple's legal fees.

Sep 28, 07 - 03:52 pm Comment from: C

If Li and the others were hoping to resell their iPhones for a fat profit, they were acting as speculators, which is a risky business. Sometimes it pays off, sometimes you lose big. She needs a good slap (along with the other litigators in her suit).

Sep 28, 07 - 03:55 pm Comment from: shiftOpt k

@Henri
I live here in the US, and feel it's waaaaaay outta control. You don't see suing any and everybody over any and every little thing anywhere but here. I think it's an occupation of sorts… ppl too lazy to work daily wanting an "easy buck." Buncha losers! Making everyone pay by driving prices up… the companies have to recoup the money somehow… the suers are to stoopid to realize they're paying the price for it along with everyone else. Whatta lotta idiots! mad

Sep 28, 07 - 03:57 pm Comment from: Galloway

And the complete fucking lunacy continues.

Sep 28, 07 - 03:57 pm Comment from: class action

Can we file a class action against the two of them for damaging the reputation of Asians everywhere with this ridiculous lawsuit? I think $1 Trillion in damages would do nicely. wink

MW: taken... can this really be taken seriously?

Sep 28, 07 - 03:59 pm Comment from: whatever

What a FSCKING Joke..

Sep 28, 07 - 04:01 pm Comment from: ipodboy

If you are an early adopter then sometimes you get hit, How would you like to have one of the first Plasma TV's only to see how cheap they are now..

Sep 28, 07 - 04:02 pm Comment from: CheekyGit

From TeachMeFinance.com:

Caveat Emptor -- Let the buyer beware, which is to say the purchaser buys at his or her own risk.

From Oxford-English dictionary:

Caveat Emptor - the principle that the buyer is responsible for checking the quality and suitability of goods before purchase.

— ORIGIN Latin, ‘let the buyer beware’.

-----------------------------------------------------------------------------------------------

The plaintiffs don't have a leg to stand on.

CASE DISMISSED !!!!!!!!

Sep 28, 07 - 04:03 pm Comment from: dude

Did anyone happen to notice that the second generation RAZR is $499 or $299 with a 2 year plan... What a ripoff.

Sep 28, 07 - 04:08 pm Comment from: Peter

My favorite, of course, is the $1,000,000 in "damages" over her purchase of a $499 phone. How the heck did she come up with that one?

Sep 28, 07 - 04:08 pm Comment from: Jeff

She, like thousands of others, the suit claims, is now the victim of price discrimination in that she cannot resell her iPhone for the same profit as customers who purchased the device after price drop.

So she is suing because she can't make as much profit as others selling USED merchandise....O.K.

@Larry tate
How has our country (world) gotten so f***ed-up????

It is the mentality of entitlement and no personal responsibility. "The government will take care of me so I don't have to pay attention and I am entitled to whatever it is I need."

That's what happens when people become dependent on the government for their every need through socialist style policies.

Sep 28, 07 - 04:08 pm Comment from: Roberto

So su mi

Sep 28, 07 - 04:12 pm Comment from: whatever

I believe that she signed a 2 year contract - What is this Trade Up shit she is pulling out of her ass..... and she got back $100 for her 4GB phone and I also got $100 for my 8GB so she got compensated even more.

Sep 28, 07 - 04:13 pm Comment from: Dingleberry

You know she was trying to make a profit by selling on eBay and she is mad that Apple made enough phones to meet demand and she could not sell hers.. TOO BAD

MW=future as in nothing is future proof

Sep 28, 07 - 04:15 pm Comment from: lbuschjr

Wow, I'm an attorney, and I didn't know that any company from whom you buy a product has to guarantee price protection in the event you want to resell it to a third party.

Hey, where's my old 3G iPod? Lawsuit!

She had to have bought her 4 GB iPhone at least two weeks before the price drop was announced, otherwise she could have returned it and gotten her money back from Apple. And AT&T;gives you 30 days to return it.

I guess Motorola, Nokia, LG, etc. should be prepared for similar lawsuits involving their phones.

Sep 28, 07 - 04:18 pm Comment from: K2

@Jeff
This has nothing to with dependence on government -- it has to do with people wanting to make a quick buck abusing a system which does not discriminate between reasonable and unreasonable suits.

Sep 28, 07 - 04:19 pm Comment from: Demon

I'm going to file suit on Ford and Shell because I purchased a New Ford F450 Truck and Ford 2 months later is giving customers a $7,000 rebate and the price drop $3,000 while Shell raised the price of Gas to over $3.00/gallon.
This is an Attorney looking to make a name and cash in. Bet the attorney is working on contingency fees and they are hoping Apple and AT&T;settle out of court.

Sep 28, 07 - 04:19 pm Comment from: British Mac Head

Sue, sue, sue, sue, sue aaaarrrrgggghhhh..

Why do people always think they are entitled to a free ride.

I sincerely hope the UK never becomes the litigation state America has become. It's pathetic.

No offense like!

Sep 28, 07 - 04:21 pm Comment from: @lbuschjr

Actually Apple made ATT cut that to 14 days for the iPhone

Sep 28, 07 - 04:21 pm Comment from: Are you kidding me?

This is ridiculous. Yeah, it's frustrating. But Apple took an amazing move in offering the $100 credit. Give me a break.

Sep 28, 07 - 04:22 pm Comment from: NSFY

Maybe she really is emotionally destroyed over this. . .BWAHAAHAHAHAHAHAHA ! ! ! ! Sorry. I tried to keep a straight face.

Sep 28, 07 - 04:22 pm Comment from: DC

YES!!!! I hope she wins!! Apple is becoming the new Microsoft. I hope we all get compensation from this lawsuit and we get our other $100 back Apple shafted from us. On another note I hope Apple fixes all those phones that are not usable because of their stupid stand on unlocked phones. It is our legal right to unlock our phones, but it if they want re-lock at least let them operate in a locked state with AT&T;. STUPID APPLE AND AT&T;!!!!!!!!!!!!!!!!!!!!!!!

Sep 28, 07 - 04:25 pm Comment from: Sure Am Relieved

Apparently it is time for the courts to start assigning court costs (including the cost of the defense's attorneys) to plaintiffs in cases such as this. And make the lawyer who filed the lawsuit (i.e. the person who should have advised this was not a good idea) pay 50% of it. And rip a strip off the filing lawyer a mile wide just for good measure, in front of everybody.

In other words, if you are so brain dead stupid as to file a brain dead stupid lawsuit, and you manage to find a brain dead stupid lawyer to do it for you, wasting court admin time, the court's time, the defense's time, your stupidity will cost you.

You will be amazed at how quickly the stupid cases will go away.

This is not to discourage reasonable cases, just stupid ones, and, since the judge is already making a judgment on the merit, this is a very minor, easy change.

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