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Sat, Nov 21, 2009 - 01:54 AM EST  —  AAPL: 199.92 (-0.59, -0.29%)  |  NASDAQ: 2146.04 (-10.78, -0.5%)

Apple settles 1st generation iPod nano ‘scratch’ suit for $22.5 million
Friday, January 23, 2009 - 01:54 PM EST

"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: www.ipodnanosettlement.com

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.]

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Jan 23, 09 - 01:57 pm Comment from: Wandering joe

The only ones making money out of class action lawsuits are the suits.

Jan 23, 09 - 02:08 pm Comment from: mecca3000

wow, $4.5 million attorneys' fee... $200,000 in expense!!! What, did they have to buy a couple of Porsche to get to the court???

Jan 23, 09 - 02:10 pm Comment from: ron

Sounds like a line in a c-rap song/monologue/talk thingy, "You Can't Scratch This". Oh! Sorry, 'You Can'.

Jan 23, 09 - 02:14 pm Comment from: ron

Will Apple get a tax credit on the $22.5 million loss from their dem. friends?

Jan 23, 09 - 02:54 pm Comment from: joe

Apple needs better attorneys.

Jan 23, 09 - 03:08 pm Comment from: Mac_ATTY

YEAH!!! I Should be able to get twice as much for iphone not having MMS... anyone wanna join!

Jan 23, 09 - 03:11 pm Comment from: twilightmoon

WOW that's way too easy!

Hmmm..lets see, a product can SCRATCH! let's sue!!

I'm sure I have enough products laying around here that I can "scratch" to set me up for the rest of my life!!

Jan 23, 09 - 03:12 pm Comment from: montex

@ron

Will Apple get a tax credit on the $22.5 million loss from their dem. friends?

I think, as a company, Apple is rich enough to qualify for the loving attention of the Republican party, and all the tax breaks such love entails.

But right now I think Dell could use some love.

Jan 23, 09 - 03:12 pm Comment from: twilightmoon

Sorry Mac_ATTY already too busy with the copy/paste lawsuit!!

Jan 23, 09 - 03:35 pm Comment from: Mac Vet

I wonder when the lawsuits will get around to these annoying glossy screen computers.

Not just from Apple, but from all of them.

My productivity has declined substantially because I have to constantly move around to reduce the glare/reflections.

The fact of the matter that Apple now offers a anti-glare coating as a $50 Built to Order option on their new top of the line 17" Mac Pro's goes to show there is a problem.

But the entire computer industry is just forcing these glare screen computers down our throats, like we are stupid or something.

I'm beginning to think that computers are on their way out in the present form we see it, perhaps Apple and others are making more money on the "iPhone and iPod Touch" type computers with their hefty monthly revenue stream from the telco's?

Hmm...

Jan 23, 09 - 03:50 pm Comment from: ken1w

@ Mac Vet

You managed to associate a story about iPod scratches with another post about glossy screens. Impressive. Your productivity will probably improve if you did not write these posts. wink

Jan 23, 09 - 05:09 pm Comment from: tool

"Will Apple get a tax credit on the $22.5 million loss from their dem. friends?"

sure, because certainly the dems are the only ones fleecing the public, right?

Jan 23, 09 - 05:11 pm Comment from: nbxcm,v bm,x

For less than 22.5 million dollars Apple could have and should have designed a more scratch-resistant product.

Jan 23, 09 - 05:12 pm Comment from: Marco Macro Mushmouth

"I had a 1st gen nano and it scratched a lot."

It probably had to scratch the itch it had, caused by cooties from your lice infected carcass. Yer an asshole.

Jan 23, 09 - 05:31 pm Comment from: tz

Ridiculous! My boss's HD standard black iPod she got at the same time I got the first-gen Nano was just as scratched up as my black Nano.
After all these years my Nano is like, totally scratched up. A protector film over the display works just fine.
Frivolous lawsuits are bullshit

Jan 23, 09 - 05:40 pm Comment from: tz

Dems vs Reps, liberals vs conservative. Yup, buy into that simplistic paradigm, and the cornerstone to the foundation of your brainwashing is laid.
Political, social and economic issues are far more complex than the cheering for our team mentality that passes for political dialogue in this rather disfunctional society/economy/government We The People have allowed to develop in recent decades.
Get a brain, and think for yourself, you sheep!

Jan 23, 09 - 06:53 pm Comment from: eMax

I just got one of these emails and i WONT be cashing in on this retarded claim.

Jan 23, 09 - 07:01 pm Comment from: tz

eMax . . . I just got the email concerning my Nano, wow $25 back from Apple! I'm with you. I will not bother.

Jan 23, 09 - 07:09 pm Comment from: tz

LOL quote from the email "To be eligible for a payment from the Fund, you must have experienced scratching of your iPod nano that impaired your use or enjoyment of it."
Call the waaaaaaambulance I can't listen to a scratched iPod !

Jan 24, 09 - 10:37 am Comment from: Forrest, Forrest Gump

@MacVet et. al.

What are you? A professional complainer? Let me tell you something. I am a visual impaired, I had my retina damaged by a parasite during my gestation. And I thanks Apple for the glossy screen. Yes, you have to look for a dark spot in you back, but the screen is much better and crisp.

Didn´t you like the glossy ones. Ok, buy a cover or buy another brand.

Stupid is as stupid does®

Jan 24, 09 - 03:20 pm Comment from: knew

If the big iPods at that time were of the same design, why isn't there a scratching lawsuit for these?

What does it mean, some of the 1g nanos were coated? Did they get an anti-scratch laquer like the front lamps of cars have?

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