Apple and Nike have agreed on the terms of the settlement surrounding the lawsuit against the two companies for allegedly misrepresenting their fitness watch, the FuelBand.
Sports equipment manufacturer Nike will fork over a hefty sum to Apple to settle a case regarding its FuelBand fitness watch. According to a report from Modern Readers, Apple will not pay a cent in connection to the lawsuit.
The two companies agreed that Nike would pay $2.4 million out to customers who purchased a FuelBand between January 19, 2012 and June 17, 2015. Apple was a co-defendant in the case, but only Nike has been found liable for falsely advertising the wristband.
Nike will give class members the option of a $15 payout, or a $25 gift card that could be used in the United States, Puerto Rico, or online. Consumers will have until January 4, 2016 to claim their payout or gift card. There will be no limit to the number of payouts that may be claimed based on the number of FuelBands a consumer may have purchased.
The plaintiffs in the case were led by a consumer named Carolyn Levin. Levin claimed that the FuelBand doesn’t accurately track fitness measurements like calories burned, steps taken, and overall activity as was advertised. Apple and Nike were allegedly aware of these defects, but continued to market and sell the FuelBand.
A fairness hearing will take place on November 4, where both companies will further discuss the terms of the settlement, attorney fees, and a specific reward for the leader of the class in the settlement.
Wanda B. Hewlett
Wanda B. Hewlett (Contributor) is a freelance writer from the UK. When she’s not busy writing she loves to spend her time traveling, exploring and running.