Have you ever provided Apple with an iPhone or iPod touch for warranty-related purposes, only to be denied coverage due to a falsely-activated water damage indicator? For a number of years, this is how Apple dealt with iOS devices that required servicing. If the litmus paper indicator in the headphone jack of an original iPhone, iPhone 3G, iPhone 3GS or first- through third-generation iPod touch had turned red, which typically indicates that the device has come in contact with or been submerged in water, you were out of luck getting any official warranty coverage from Apple.
Apple changed this particular policy in 2010, but a number of consumers were still understandably upset. The result was a class action lawsuit, filed around the same time Apple changed its methods, that has officially culminated in a $53 million settlement that Apple will be paying out to consumers that believe they were stripped of their one-year or two-year warranty agreements. It’s important to note that this settlement does not apply to anyone with a water damaged device, but rather those that were denied warranty service on it.
Apple does not admit any wrongdoing.