Apple Inc. And Nike Inc. Settle FuelBand Lawsuit

26 Jul 2015 | Author: | No comments yet »

Apple Inc. And Nike Inc. Settle FuelBand Lawsuit.

Apple and Nike finally and mutually settles their feud in one class action lawsuit which alleged that both sold Nike FuelBand fitness trackers even though they knew that the biometric measurements of the device were inaccurate.A settlement has been reached in the now famous FuelBand lawsuit: Nike to pay $.2.4M, Apple to pay 0$, although the latter was named as a defendant in the case.Consumers who bought a Nike+FuelBand during 2012 and 2015 might now be eligible to receive a small payment from the sports brand Nike after an agreement was reached along with co-defendant Apple to settle the class action suit that alleged the companies of falsely advertising that the device had capabilities to track health.

As per terms that were reached in June, Nike is going to be paying $ 2.4 million to their customers who bought their FuelBand between 19th Jan 2012 and 17th Jun 2015. You may remember that the accusers, who were represented by Carolyn Levin, said that the expensive and fancy-looking FuelBand designed by Nike’s Digital Sport division is not capable of proving true all the ads that have gone into its campaign. Leading the plaintiffs, Carolyn Levin, their representative alleged that FuelBand, the erstwhile brand from Nike could not live up to the advertisements that touted its ability to track calorie burn accurately, steps and the overall activity representing a conceptual reading of “NikeFuel”. According to the attorneys for the plaintiffs, the consumers were misled by the companies by promoting the FuelBand in television, stores, online and other places.

Just imagine the frustration of the users of these fitness bands when, after paying as much as $55, would receive a band that would measure calorie burn less accurately than an old treadmill. As the FuelBand allegedly was never capable of performing the tracking functions advertised, the suit asserted that Nike was also in breach of warranty.

The ironic fact is that, although it is not in Nike and Apple’s hands, the band is still available for sale on online retail stores, bearing the same false advertisements. Potential class members received notices on Friday telling them how they can file their settlement claims which entitled them to a payment of $15 or a $25 gift card which could be redeemed at Nike stores. It is known that these adverts were even endorsed by Tim Cook, Apple’s current CEO, who boasted about the capabilities of the band long before its debut along with the Apple Watch. On November 4, a fairness hearing has been scheduled to discuss the terms of the settlement, expenses and attorneys’ fees including an award for the class representative.

The worst of it all is that the FuelBands were still being sold by Apple with the same ads as late as March this year, after the problems had been long discovered. Apple also has an intimate working relationship post partnership on several health related software and hardware solutions dating back to 2006 when the Nike+iPod sensor kit hit the market.

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