Smith v. Apple, Inc.

District Court, N.D. California·Decided October 25, 2024·No. 4:21-cv-09527·Unknown

Opinion

CHRIS SMITH, et al., Case No. 21-cv-09527-HSG

Plaintiffs, ORDER GRANTING MOTION FOR PRELIMINARY APPROVAL v. Re: Dkt. No. 155 Defendant.

Pending before the Court is Plaintiffs’ unopposed motion for preliminary approval of class action settlement. See Dkt. No. 155. The Court held a hearing on the motion, and now GRANTS it. A. Factual Allegations This is a putative class action brought on behalf of purchasers of Apple Watches (“Plaintiffs”). See Dkt. No. 136 (“TAC”) ¶ 1. Plaintiffs allege that First Generation, Series 1 through Series 6, and Series SE Apple Watches contain “an undisclosed and unreasonably dangerous safety hazard.” Id. ¶ 2. More specifically, Plaintiffs allege that sudden swelling of the watch batteries can cause the screen to detach, shatter, or crack, “exposing its razor-sharp edges and leading to operational failure of the Watch and/or personal injuries . . . .” Id. Plaintiffs allege that Apple (“Defendant”) failed to allocate sufficient space within the watch to prevent the screen issue, “[d]espite knowing that the battery inside the Watch can suddenly swell.” Id. Plaintiffs further allege that the watches have injured Plaintiffs and putative class members, creating a “substantial and material risk of serious injury, including lacerations, cuts, abrasions, and other Plaintiffs filed their initial complaint in December 2021, Dkt. No. 1, and an amended complaint in March 2022. Dkt. No. 31. Defendant then filed a motion to dismiss the amended complaint, which this Court granted in part and denied in part. Dkt. No. 80. Plaintiffs filed a second amended complaint in March 2023, and Defendant again moved to dismiss. See Dkt. Nos. 84, 100. The Court granted Plaintiffs’ request to file a Third Amended Complaint and mooted the second motion to dismiss. Dkt. No. 134. The operative complaint asserts the following causes of action against Defendant: violations of the California Unlawful Competition Law, Cal. Bus. & Prof. Code §§ 17200, et seq. (“UCL”); violations of the California Consumers Legal Remedies Act, Cal. Civ. Code §§ 1750, et seq. (“CLRA”); fraud by omission under various state laws; violations of the Song-Beverly Consumer Warranty Act, Cal. Civ. Code § 1790 et seq.; and violations of consumer protection and unfair competition laws in New York, Texas, and Florida. See FAC ¶¶ 295–396. In August 2024, Plaintiffs filed their motion for preliminary approval, and the Court held a hearing on the motion and took it under submission on October 3, 2024. See Dkt. Nos. 155, 159. The Court subsequently directed the parties to submit additional evidence including: 1) a sufficiently detailed estimate of the potential class recovery at trial; and 2) the actual terms of the provision that triggers Defendant’s ability to reject the settlement agreement. See Dkt. 160 at 1–2. The parties submitted timely responses. See Dkt. Nos. 161, 162. B. Settlement Agreement In November 2023, the parties participated in a full-day mediation with mediator Randy Wulff. See Dkt. No. 155-2, Tufts Decl. ¶ 8. The parties ultimately entered into a settlement agreement. See Dkt. No. 155-1. The key terms are as follows: Class Definition: The Settlement Class is defined as “all natural persons who reside in the United States, who own or owned any model First Generation, Series 1, Series 2 or Series 3 Apple Watch (i.e. “Covered Devices”) for personal and/or household use, and who are reflected in Apple’s records as having reported Covered Issues in the United States,” between April 24, 2015, and February 6, 2024. Dkt. No. 155-1 (“Settlement Agreement,” or “SA”) at 1 ¶ 24. “Covered Apple’s records as having reported symptoms potentially associated with battery swell.” Id. ¶ 24. Settlement Benefits: Defendant will make a $20,000,000 non-reversionary payment. SA at 1 ¶ 27. This gross settlement fund will cover Court-approved attorneys’ fees and costs, settlement administration fees, incentive payments to the Lead Plaintiff and the other named Plaintiffs, and payments to class members. Id. at § B.2. Class members who make a payment selection by the response deadline, or whose valid, current payment information is confirmed by the Settlement Administrator, will receive either $20 for each Covered Device or, if necessary, a pro rata portion of the settlement fund less than $20. Id. at § B.4. If there is more than $50,000 remaining in the settlement fund after all costs have been allocated, class members may receive up to $50 per Covered Device. See id. The parties propose that any remaining funds would go to the Rose Foundation’s Consumer Products Fund as the cy pres recipient. SA § B.9. Release: The Named Plaintiffs and the Settlement Class release and discharge Defendant and its subsidiaries from: “any and all damages, suits, claims, debts, demands, assessments, obligations, liabilities, attorneys’ fees, costs, expenses, rights of action and causes of action, of any kind or character whatsoever, whether based on contract (express, implied, or otherwise), statute, or any other theory of recovery, and whether for compensatory or punitive damages, and whether known or unknown, suspected or unsuspected, occurring before the Effective Date of the Settlement (the “Released Matters”) arising out of or related to the claims made in this Lawsuit. This release will include claims relating to the Released Matters of which the Releasing Parties are presently unaware or which the Releasing Parties do not presently suspect to exist which, if known to the Releasing Parties, would materially affect the Releasing Parties’ release of the Apple Released Parties.”

SA § H.1. Notice to class members will include the following language:

“Unless you exclude yourself with an opt-out request (see Question ___), you cannot sue, continue to sue, or be part of any other lawsuit against Apple arising out of or related to the claims in this case. The “Releases” section in the Settlement Agreement describes the legal claims that you give up if you remain a Settlement Class Member. The Settlement Agreement can be viewed at www.watchsettlement.com.”

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Smith v. Apple, Inc., (N.D. Cal. 2024).

Smith v. Apple, Inc. (Smith v. Apple, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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