Tech giant Apple (AAPL-0.20%) has agreed to pay $95 million to settle a proposed cash action lawsuit over allegations that it used its virtual assistant to eavesdrop on iPhone users.
The proposed settlement would resolve five years of litigation stemming from accusations that Apple used Siri to record conversations from users of its iPhones, iPads, watches, headphones, computers, and smart speakers. According to the complaint filed in 2019 in the Northern District Court of California, Apple recorded conversations even when the usual trigger words, “Hey Siri,” weren’t said.
The plaintiffs argued that consumers who purchased devices with Siri enabled did not consent to have conversations where they didn’t intentionally activate the assistant recorded. In 2019, The Guardian reported that Apple contractors regularly overhear confidential medical information and recordings of people having sex as part of their job providing quality control for Siri’s services.
Apple doesn’t acknowledge wrongdoing in the settlement, which has not yet been approved by District Judge Jeffrey White. A Feb. 14 hearing to review the settlement’s terms has been proposed.
In addition to establishing a $95 million fund to pay out settlement funds, the plaintiffs can apply for up to $10,000 in service awards each. The plaintiffs’ counsel can petition the judge for legal fees of up to $28.5 million, along with $1.1 million for expenses, from the settlement fund.
If approved, the settlement would allow for tens of millions of Apple customers who owned devices from September 17, 2014, through December 31, 2024, to file claims.
Consumers can receive up to $20 for every device they own equipped with Siri — with a cap at five devices per individual — although payments could be adjusted depending on how many claims are filed. Only a fraction of eligible customers are expected to file claims.
The settlement won’t come anywhere near close to hurting Apple’s wallet. In total, it represents just several hours of profit for the company, which pocketed almost $94 billion in net income in its latest fiscal year.
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