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Apple to Pay $53 Million to Resolve Suit Over Warranties

Apple Inc. agreed to pay $53 million to resolve a consumer class-action lawsuit alleging the company relied on faulty indicators showing that iPhones and iPods were exposed to water to deny customers’ warranty claims.

Consumers may be eligible for $300 depending on the device model they owned, according to documents filed in federal court in San Francisco. Lawyers for consumers say the liquid submersion indicators on iPhones and iPods could be triggered by moisture during ordinary use and falsely indicated devices had been damaged by liquid spills or submersion, problems that were excluded from coverage under Apple’s warranty.