Facts

Apple Inc. is a California corporation with its principal place of business in Cupertino. It manufactures, markets, and sells various technology products, including its popular line of MacBook laptop computers. MacBooks are generally marketed as high-end laptop computers, and generally retail for $1200 or more, depending on the model. As part of its business, Apple developed and patented what became known as "the butterfly keyboard" for use in its MacBook and MacBook Pro laptop computers, and it began releasing computers using this keyboard design in its model year 2015 laptops, advertising the new computers' thinness and the precision of its keyboard. Apple began receiving complaints from consumers regarding the keyboard, and it eventually implemented a Keyboard Service Program, which offered limited repair services.

Zixuan Rao, Joseph Baruch, Bo Laurent, Ashley Marin, Kyle Barbaro, Steve Eakin, Michael Hopkins, Adam Lee, Kevin Melkowski, Lorenzo Ferguson, and Benjamin Gulker each purchased MacBook or MacBook Pro lap top computers that included the butterfly keyboard design. Eventually, the keyboard on all of their computers failed in various ways, with some keys sticking and others becoming unresponsive. They subsequently filed an action against Apple on behalf of themselves and all others similarly situated on October 11, 2018.

PLAINTIFFS' CONTENTIONS: Plaintiffs contended that the defendant designed and sold MacBook laptops with butterfly keyboards that were defective. Specifically, they contended that the keyboards would get dirty, and the keys would stick or become unresponsive, which led to letters repeating unexpectedly, not appearing, and keys feeling sticky or not responding consistently. Moreover, the plaintiffs contended that they purchased their laptops because of advertising and marketing materials that touted the MacBook's thinness and highly responsive keyboard. Plaintiffs also contended that despite defendant offering a warranty on the computers, it only provided temporary repairs or replacement defective keyboards that would also fail. The plaintiffs further contended that the defective keyboard meant the computers failed in one of their central functions, namely inputting keystrokes, and that the defendant knew of the defect and actively worked to conceal it. Accordingly, plaintiffs contended that the defendant was liable for violations of the Unfair Competition Law; violations of the Consumers Legal Remedies Act; fraudulent concealment; violations of the Song-Beverly Consumer Warranty Act; and violating various other state consumer protection statutes.

DEFENDANT'S CONTENTIONS: Defendant denied any wrongdoing or liability and all the plaintiffs' material allegations. Moreover, the defendant asserted numerous affirmative defenses, including lack of standing, waiver, and failure to mitigate.

Result

The parties reached an agreement wherein the defendant admitted no wrongdoing or liability but agreed to pay $50 million to settle class members' claims.