Apple Inc. (AAPL): This Settlement Just Might Be Child’s Play

Apple Inc. (NASDAQ:AAPL) is certainly no stranger to lawsuits, especially those of the class-action variety, where thousands of customers feel they were wronged or harmed by something Apple did or by some device defect. Cupertino recently found itself embroiled in a matter that may have to do more with the parent-child relationship dynamic, but that dynamic could have cost Apple $100 million of it had gone through to trial.

Apple Inc. (AAPL) to be Added to Several WisdomTree ETFsThis particular case involved Apple Inc. (NASDAQ:AAPL) and its its game apps from iTunes. Here is the class-action part, and we are not making this up. The lawsuit, for $100 million, was settled this week with Apple admitting no wrongdoing but wanting to avoid a drawn out legal battle. The lawsuit surrounds children making in-app purchases against their parents’ iTunes account with the parent’s knowledge or consent. The lawsuit was alleging that Apple did not have a process in place to monitor whether the purchase was being made by the account holder or by a minor, and thus the accounts would be overcharged against what the account-holder’s knowledge.

Does it sound funny to you too?

Under the settlement with Apple Inc. (NASDAQ:AAPL), those iTunes account holders who have overcharges of less than $30 would receive a $5 iTunes gift card, which those with charges larger than $30 would get some level of cash compensation. Of course, as with any settlement, claimants have a certain time period in which to file a claim form. The form can be found here, and it must be submitted in full by January 30 of next year. The teams of the settlement are to be considered for approval by a judge in mod-October, and those in the class who wish to object to the settlement may file their objection with the court by August 30.

Can you find yourself getting past the perceived absurdity of the lawsuit and give us your take on this? Is Apple Inc. (NASDAQ:AAPL) doing the right thing to settle now, and if you were a part of the class, would you be satisfied with this settlement? Give us your take in the comments below.