Apple agrees to pay $14.8M to settle iCloud storage lawsuit

Posted:
in iCloud
Apple has agreed to pay out $14.8 million to U.S. residents to settle a class action lawsuit focused on the storage of user iCloud data on non-Apple servers.

A Google Data Center
A Google Data Center


The complaint, filed back in 2019 in a California District Court, alleged that Apple had breached its iCloud server terms and conditions by storing user data on servers run by Amazon, Google, and Microsoft instead of its own.

Apple denies that it breached its promise that iCloud data is "stored by Apple," but has agreed to pay the sum to settle the class action lawsuit.

According to the settlement's website, the payout applies to anyone who purchased an iCloud subscription between September 16, 2015 and January 31, 2016. Users don't need to do anything to join the class represented in the settlement.

As long as the email used to purchase an iCloud subscription is still active, the settlement lawyers say that users will receive a notification advising them of the settlement.

Users who still have an active iCloud subscription -- and a U.S. mailing address associated with it -- will automatically receive the payout in the account that they use to pay for their plan. Otherwise, users will receive a check with the payout.

It isn't clear how large the payout will be for class members. The awards will be distributed based on the storage tier a user signed up for during the aforementioned period.

This isn't the first time that Apple has caught flack for how it stores its iCloud data. Back in 2018, the company's decision to store Chinese user data on state-owned servers also stirred controversy.

Read on AppleInsider

Comments

  • Reply 1 of 10
    DAalsethDAalseth Posts: 2,576member
    I got a notification about this over the weekend. I trashed it thinking it was SPAM.
  • Reply 2 of 10
    lkrupplkrupp Posts: 10,332member
    "It isn't clear how large the payout will be for class members.”

    $1.00 for sure. The lawyers get the rest of course. 
    ravnorodomchadbagkelemorkillroypsliceMplsP
  • Reply 3 of 10
    chadbagchadbag Posts: 1,821member
    lkrupp said:
    "It isn't clear how large the payout will be for class members.”

    $1.00 for sure. The lawyers get the rest of course. 
    Given the paltry size of the settlement (for an Apple customer base — even if for only 2015-2016), $1 would be stretching it even if the lawyers didn’t take their 1/3. 
    MplsP
  • Reply 4 of 10
    DAalseth said:
    I got a notification about this over the weekend. I trashed it thinking it was SPAM.

    I did too. Was convinced it was Spam. 

  • Reply 5 of 10
    MplsPMplsP Posts: 3,714member
    Yeah - as usual the only people who win are the lawyers. 
    rezwits
  • Reply 6 of 10
    mobirdmobird Posts: 710member
    Is this not specifically for California iCloud subscribers?
  • Reply 7 of 10
    dewmedewme Posts: 4,643member
    JBSlough said:
    DAalseth said:
    I got a notification about this over the weekend. I trashed it thinking it was SPAM.

    I did too. Was convinced it was Spam. 

    Me too.

    I hope I’ll still get my $0.96 gift card after the lawyers take their cut.
  • Reply 8 of 10
    Surely this lawsuit hurts iCloud customers more then it helps. There needs to be a class action lawsuit against class frivolous action lawsuits.
  • Reply 9 of 10
    lkrupplkrupp Posts: 10,332member
    Surely this lawsuit hurts iCloud customers more then it helps. There needs to be a class action lawsuit against class frivolous action lawsuits.
    It could be the lawyers decided to settle for this pocket change amount because they knew they might lose the court case. For Apple it’s a definite win. Apple makes $15 million every ten seconds and admitted no wrongdoing. 
    edited March 2022
  • Reply 10 of 10
    mpantonempantone Posts: 1,939member
    This is still a loss for Apple. Even if they are mailing out $1.00 checks, the effort to do so isn't trivial.

    This is why I still have an Apple Card.

    Goldman Sachs sucks large rocks and I haven't used my Apple Card since September 2019 (after just two transaction). Normally a credit card company would be inclined to cancel my account for non-activity. However I have an outstanding Daily Cash Balance of $0.12 or so. Because of US laws, that twelve cents is my property. Legally GS has to mail me a check for $0.12 before they can cancel my account; the postage is more.

    My guess is if GS wants to cancel my Apple Card, it will be around $30-50.

    Who benefits from this standoff? We both do to some degree. GS can claim me as a cardholder, my credit report shows an account in good standing that is growing in duration. However GS doesn't see any revenue from me anymore.

    The court's $14.8 million fine is a slap on the wrist. The administration of the fine payout is Apple's big headache. That cost is theirs to absorb.
    edited March 2022
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