Settlement in iTunes Gift Card class action suit offers $3.25 per customer
A settlement has been reached in a class action lawsuit involving iTunes customers who purchased songs from the online music store for $1.29 with gift cards whose packaging promised songs for only $0.99.
Kurtzman Carson Consultants reports on its website that the Johnson v. Apple Inc. class action lawsuit, first filed by Gabriel Johnson in July, 2009, has been settled out of court, with members of the class eligible to receive $3.25 in iTunes Store credit.
The lawsuit alleged that Apple overcharged customers by advertising and distributing $0.99 gift cards before subsequently raising prices for certain songs to $1.29 in April 2009. Although Apple denied the allegations, both parties decided to settle to avoid the cost of litigation.
Problems arose when Apple ditched its iTunes-wide $0.99 model in April 2009, and began offering higher-quality tracks for $1.29. During the transition, Apple continued to advertise $0.99 songs on some gift card packaging. The new $1.29 pricing was later expanded to include new hits and popular tracks, along with the addition of a $0.69 model for less-popular songs.
In order to receive the credit, claimants must have purchased songs priced at $1.29 on or before May 10, 2010, with an iTunes gift card that said songs from the online store were $0.99.
Apple has also agreed not to oppose the Class Counsel's request for an award of attorney's fees and expenses of up to $2,117,500, which will be up for court approval in Feb., 2012. Counsel fees do not reduce the amount awarded to the class.
Kurtzman Carson Consultants reports on its website that the Johnson v. Apple Inc. class action lawsuit, first filed by Gabriel Johnson in July, 2009, has been settled out of court, with members of the class eligible to receive $3.25 in iTunes Store credit.
The lawsuit alleged that Apple overcharged customers by advertising and distributing $0.99 gift cards before subsequently raising prices for certain songs to $1.29 in April 2009. Although Apple denied the allegations, both parties decided to settle to avoid the cost of litigation.
Problems arose when Apple ditched its iTunes-wide $0.99 model in April 2009, and began offering higher-quality tracks for $1.29. During the transition, Apple continued to advertise $0.99 songs on some gift card packaging. The new $1.29 pricing was later expanded to include new hits and popular tracks, along with the addition of a $0.69 model for less-popular songs.
In order to receive the credit, claimants must have purchased songs priced at $1.29 on or before May 10, 2010, with an iTunes gift card that said songs from the online store were $0.99.
Apple has also agreed not to oppose the Class Counsel's request for an award of attorney's fees and expenses of up to $2,117,500, which will be up for court approval in Feb., 2012. Counsel fees do not reduce the amount awarded to the class.
Comments
I totally disagree with Apple settling this lawsuit in the described manner. The lawyers should be compensated based on filed (and accepted) claims. Once again lawyers make off with millions while those "harmed" get pennies.
Makes one wonder why anyone would file a class action lawsuit if the lawyers get most of the "profit" and the plaintiffs get stiffed. I'm guessing these lawyers make promises about how much money they can get for the plaintiffs, then come back months or years later and recommend a settlement as "as good as we could get."
And of course these lawsuits figure into the price of the product too. We all wind up paying the lawyers millions while we get our $2.00 coupons.
Really, only in America could this of actually gone to court! As awesome as you guys often are, you're sometimes a bit daft!
Makes one wonder why anyone would file a class action lawsuit if the lawyers get most of the "profit" and the plaintiffs get stiffed. I'm guessing these lawyers make promises about how much money they can get for the plaintiffs, then come back months or years later and recommend a settlement as "as good as we could get."
And of course these lawsuits figure into the price of the product too. We all wind up paying the lawyers millions while we get our $2.00 coupons.
It's the lawyers that solicit and file these suits. Nobody wins except the lawyers, ever.
Too funny. I guess theses days anything can be fought in court. What a joke the modern court system has become.
Makes one wonder why anyone would file a class action lawsuit if the lawyers get most of the "profit" and the plaintiffs get stiffed. I'm guessing these lawyers make promises about how much money they can get for the plaintiffs, then come back months or years later and recommend a settlement as "as good as we could get."
And of course these lawsuits figure into the price of the product too. We all wind up paying the lawyers millions while we get our $2.00 coupons.
If you read the actual complaint it is usually John Doe files on behalf of all the other people who are in the class action. The attorneys and John Doe have a separate contract that gives Mr. Doe a substantial portion, say 20%, of the lawyer's profit as a referral fee. Everyone else gets a free song.
Makes one wonder why anyone would file a class action lawsuit if the lawyers get most of the "profit" and the plaintiffs get stiffed. I'm guessing these lawyers make promises about how much money they can get for the plaintiffs, then come back months or years later and recommend a settlement as "as good as we could get."
And of course these lawsuits figure into the price of the product too. We all wind up paying the lawyers millions while we get our $2.00 coupons.
It's the lawyers who do the filing. You've seen the ads on late night TV. WERE YOU OR A FAMILY MEMBER HARMED AFTER TAKING PILL XYZ? CALL US NOW! GET WHAT YOU DESERVE!.
No member of the public goes to a lawyer asking for help. The lawyers troll around for clients.
Apple has also agreed not to oppose the Class Counsel's request for an award of attorney's fees and expenses of up to $2,117,500, which will be up for court approval in Feb., 2012. Counsel fees do not reduce the amount awarded to the class
Lawyers win, customers lose.
Typical class action lawsuit.
I totally disagree with Apple settling this lawsuit in the described manner. The lawyers should be compensated based on filed (and accepted) claims.
They do get paid that way.
The settlement is "up to".
This amount depends on how many claims are filed.
Makes one wonder why anyone would file a class action lawsuit if the lawyers get most of the "profit" and the plaintiffs get stiffed. I'm guessing these lawyers make promises about how much money they can get for the plaintiffs, then come back months or years later and recommend a settlement as "as good as we could get."
And of course these lawsuits figure into the price of the product too. We all wind up paying the lawyers millions while we get our $2.00 coupons.
I have an attorney representing me right now with my VA claim for military service connection. I haven't heard from my attorney for 1 1/2 years. I call and leave a message and they never call back. They have already gotten paid for one stage of my claim and I have not received 1 penny. I am beginning to think that Attorneys are nothing but ass holes who love money and are out to get everything regardless of what the client gets. I am beginning to dislike attorneys very very much.
Makes one wonder why anyone would file a class action lawsuit if the lawyers get most of the "profit" and the plaintiffs get stiffed. I'm guessing these lawyers make promises about how much money they can get for the plaintiffs, then come back months or years later and recommend a settlement as "as good as we could get."
And of course these lawsuits figure into the price of the product too. We all wind up paying the lawyers millions while we get our $2.00 coupons.
scumbag bottom feeding attorneys - the US legal system is a joke!
Then leave the US.
I have an attorney representing me right now with my VA claim for military service connection. I haven't heard from my attorney for 1 1/2 years. I call and leave a message and they never call back. They have already gotten paid for one stage of my claim and I have not received 1 penny.
Get a new attorney ASAP.
Seriously.
How am I to know if any gift cards I had said 99¢ on them?
indeed. if they ask for proof, no one will have it at this point because they typically toss the gift cards after redeeming them. Maybe the couple of folks that filed the suit kept theirs but not everyone else.
Apple was probably wrong and had misadvertised something, or changed terms of pricing on itunes, but cmon this is ridiculous. Companies can change pricing.
I won't tell you who to vote for in the next election but instead will ask you to voice your opinion to whomever you support that our legal system has to change and cases like this one demonstrate that need. Pay careful attention to how they respond (if they respond).