Apple, AT&T sued over alleged iPhone defects
A class-action lawsuit has been brought against Apple Inc. and AT&T Mobility LLC claiming that the iPhone 3G is defective.
The suit was moved from the Nassau County Supreme Court, the state court where it was filed by plaintiff Avi Koschitzki, to a federal court in the Eastern District of New York. The primary complaints are with the allegedly easily breakable casing and spotty 3G network coverage.
Mr. Koschitzki filed the suit "to recover for the harm caused by Defendants' deceptive, improper or unlawful conduct in its design, marketing, manufacturing, distribution and sale of Apple's iPhone 3G series of mobile phones," the suit says.
While the popularity of the iPhone has seemed to buoy Apple and AT&T, helping both companies to overcome the economic slowdown, this suit -- if successful -- could represent a chink in each company's armor.
The iPhone 3G series mobile phones include the 3G-8GB iPhone and the 3G-16GB iPhone.
"The 3G iPhones do not and cannot adequately perform due to the insufficient 3G bandwidths and AT&T infrastructure," the suit says.
"Additionally, the iPhones have had well-known and documented issues regarding the premature 'wear-and-tear' of the iPhones' housing, including the formation of hairline cracks in the iPhones' casing."
The suit claims that Apple's and AT&T's conduct constitutes unfair practices under the New York Deceptive Practices Act, General Business Law § 349, as well as negligent misrepresentation and unjust enrichment, and a breach of express and implied warranties.
The class-action suit may include consumers that bought defective iPhones designed, marketed, manufactured, distributed and sold by the defendants.
The suit is "based upon information and belief that the 3G iPhones demand too much power from the 3G bandwidths and the AT&T infrastructure is insufficient to handle this overwhelming 3G signal based on the high volume of 3G iPhones it and Apple have sold," the suit says.
"In addition, Plaintiff and other consumers have experienced the formation of hairline cracks in the housing of their iPhones," the suit continues.
"Based upon information and belief, the hairline cracks appear around the camera, near the volume rocker and other areas on the iPhones' housing."
The plaintiff and members of the class are seeking "restitutionary and injunctive relief, including: (a) compensatory, punitive and statutory damages; (b) disgorgement and restitution of Defendants' ill-gotten gains for unfair business practices, untrue and misleading advertising; and (c) disclosures and/or disclaimers on the outside of its boxes or advertising material prior to making any electronics device purchase."
The lawsuit references a news article published Aug. 13 by The Associated Press.
A quote from that article claims that the iPhones exhibit "spotty wireless broadband connectivity [which] most likely resulted from a hardware problem introduced during mass production."
The same article recounted how "Ny Teknik, Sweden's foremost engineering weekly, obtained a report on tests conducted by unnamed experts that showed some handsets' sensitivity to third-generation network signals is well below the level specified in the 3G standard."
It remains to be seen whether this will affect either Apple or AT&T's bottom line.
However, given the intense competition in the industry -- made even more so by the current recession -- the suit could not have come at a worse time for Apple and AT&T.
"At all relevant times, Apple and AT&T made and continue to make misrepresentations in the promoting, advertising, and/or sale of its 3G iPhone and service plans described below," the suit claims.
"At all relevant times, the iPhones were defective and would not provide its inherent functionality and/or the functionality expected by consumers.
"This has been evidenced by the increasingly common problem suffered by Plaintiff and thousands of members of the proposed Class."