Suits Allege Apple Concealed Knowledge of iPhone 7 Defect

May 10th, 2019|Categories: HB Risk Notes|Tags: , , , , , , , , , , , , |

Apple Inc. has been sued in federal courts in Illinois and California for allegedly knowingly selling iPhone 7 and 7 plus models with an audio chip defect, called the “Audio IC Defect” or “Loop Disease” by consumers, which causes an array of operational issues. The bug gums up handset audio functions, grays out speaker buttons during calls, and degrades microphone fidelity.  And if that's not enough it can kill Siri's voice command capabilities. The plaintiffs accuse Apple of actively concealing the Audio IC Defect while advertising the iPhone 7 as “the best iPhone we ever made.” The plaintiffs claim that when they first experienced operational problems Apple didn't offer complimentary repairs. The suits allege breach of warranty and violation of California and Illinois consumer protection laws. Plaintiffs seek class certification, damages, attorneys' fees, and injunctive relief. In Illinois, the plaintiffs may also try to force Apple to repair, recall, and/or replace current defective iPhone 7s in the United States and notify all purchasers of the Loop Disease. Evidence shows “Apple’s internal acknowledgement and subsequent discontinuation of their out-of-warranty repairs without public announcement of the Audio IC Defect amounts to misrepresentation and concealment of the Audio IC Defect,”  the California complaint in Casillas v. Apple reads.  Complaints available on Scribd.com. Casillas v. Apple, N.D. Calif., No. 3:19-cv-2455 Castelli v. Apple, N.D. Ill., Eastern [...]

Anderson Kill’s 5th Annual Cyber Insurance Recovery Conference

May 6th, 2019|Categories: HB Risk Notes|Tags: , , , , , , , , , , , , , |

Recent news of "Collection 1", a cache of sensitive data now appearing for sale on the dark web and comprised of an astonishing 773 million records, is a grim reminder of the scope of cyber perils for most.  Last year's staggering tally of serious data breaches and theft coupled with a spate of new legislation for companies gathering, hosting and selling consumer data means policyholders must rise to the challenge.  New state legislation compounds an already daunting federal and international regulatory landscape, and regulatory compliance will be a must to deal with the attendant fines, penalties and consumer claims that non-compliance can trigger.  New technology also continues to drive the evolving conversation about the legal relationships between parties transacting business electronically.  Risks range from anonymity that raises jurisdictional and collection issues to “immutable” record keeping that creates a permanent, public record of transactions. --Anderson Kill   Find out more about this complimentary seminar from Anderson Kill here!

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