This past April, Apple agreed to the terms of a US$53 million class-action settlement stemming from Apple's warranty practices regarding water damage on older generation iPhones and iPod Touches.
The lawsuit alleged that Apple refused to honor the warranty on devices that were ostensibly damaged by water. Both the iPhone and iPod Touch contain Liquid Contact Indicators which change color when they come into contact with water. The crux of the issue, however, is that these Liquid Contact Indicators were also prone to change color in humid environments. Consequently, Apple denied warranty coverage to many consumers who may have otherwise been eligible.
To qualify for a cash refund, you must: (a) be a United States resident; (b) Apple denied warranty coverage for your iPhone on or before December 31, 2009, OR for your iPod touch on or before June 30, 2010; (c) when it was submitted to Apple for warranty coverage, your iPhone or iPod touch was covered either by its original one-year limited warranty or by an AppleCare Protection Plan; and (d) Apple denied warranty coverage because Apple stated that your iPhone or iPod touch had been damaged by liquid.
The total payout per user will be a function of which device is at issue. The chart below is instructive, but note that the amounts are subject to change depending on how many folks actually file claims.