Apple Settles Family Sharing Lawsuit with $25 Million Payout

In a recent development, tech giant Apple has reached a $25 million settlement to resolve a class action lawsuit related to its Family Sharing feature. This feature allows users and their family members to share access to purchased apps, music, movies, TV shows, and books. The lawsuit, initiated in 2019, alleged that Apple misled users regarding the capability of using Family Sharing to share subscriptions to apps.

The lawsuit contended that Apple falsely represented Family Sharing as an option for apps that did not support it, particularly subscription-based apps. Despite Apple's denial of any misleading actions, court documents state that a substantial number of subscription-based apps, which form a significant portion of Apple's offerings, could not be shared within designated family members. The lawsuit further highlighted that, despite this limitation, these apps featured statements supporting Family Sharing on their landing pages until January 30, 2019.

While Apple maintains its denial of wrongdoing, it opted for a $25 million settlement to conclude the lawsuit. The company expressed that continuing to defend the legal action would be both burdensome and expensive. It's crucial to note that Apple's agreement to settle doesn't imply any acknowledgment of fault or liability.

As part of the settlement, U.S. residents enrolled in a Family Sharing group with at least one other person between June 21, 2015, and January 30, 2019, and who purchased a subscription to an app during that period, may be eligible for compensation. Eligible class members could receive up to $30, subject to variations based on the number of claims. However, the maximum payout per class member is capped at $50. Notably, $10 million from the settlement will be allocated for attorney fees.

Class members meeting the eligibility criteria have until March 1, 2024, to file a claim, with an email notification set to be dispatched this week. The final approval hearing is scheduled for April 2, 2024.

In wrapping up this legal chapter, Apple aims to put to rest the allegations surrounding its Family Sharing feature, underscoring the challenges and responsibilities that come with providing accurate information to consumers. As the technology giant moves forward, the settlement stands as a resolution to a legal matter that spanned several years.