Apple to Compensate Early Apple Watch Owners in Lawsuit Settlement

Apple has reached a $20 million settlement to resolve a class-action lawsuit alleging that certain early Apple Watch models suffered from a battery defect that caused screens to detach or crack (via CNET).

Filed in the U.S. District Court for the Northern District of California, the lawsuit accused Apple of manufacturing the original, Series 1, Series 2, and Series 3 Apple Watches without sufficient internal space to accommodate normal battery swelling. The plaintiffs argued that the lithium-ion batteries put pressure on the display and other components when they expanded, leading to structural damage. In some cases, users reported that the screens separated entirely from the watch casing. Apple has strongly denied any wrongdoing, but the company has agreed to settle the case to avoid prolonged litigation.

Under the terms of the settlement, Apple will create a $20 million non-reversionary fund to compensate consumers who experienced battery swelling issues with the affected models. Consumers who qualify will receive a payment of $20 per affected device, with the potential for a higher amount depending on the total number of claims filed. As with most class-action settlements, the total amount received by individual claimants will depend on the number of participants and a significant portion of the $20 million fund will also go toward legal fees and administrative costs.

No claim form is required for class members who are already registered in Apple's records as having reported battery swelling issues. These individuals will automatically receive compensation unless they choose to opt out of the settlement by February 24, 2025. Apple Watch owners who believe they qualify but have not yet confirmed their eligibility need to do so by submitting their payment method on the official settlement website before April 10, 2025.