Sports gear manufacturer Nike will pay a hefty sum to Apple to settle a class action lawsuit surrounding its FuelBand fitness watch. According to a report from Modern Readers, Apple will not be required to pay anything in connection to the lawsuit.
The two companies agreed that Nike would distribute $2.4 million to consumers who bought a FuelBand between January 19, 2012 and June 17, 2015. Apple was a co-defendant in the case, but just Nike was found liable for falsely advertising the capabilities of the wristband.
Nike will give class members the choice of receiving a $15 payout, or a $25 gift card that may be used in the United States, Puerto Rico, or in online stores. Customers will have until January 4, 2016 to claim their payout or gift card. There will be no limit to the number of payouts that can be claimed based on the number of FuelBands a consumer might have purchased.
The plaintiffs in the case were led by an angry customer named Carolyn Levin. Levin showed that the FuelBand doesn’t accurately track fitness measurements like the number of calories burned, the number of steps made, and overall physical activity as it was advertised to do. Apple and Nike supposedly knew of these defects, but continued to advertise and sell the FuelBand.
A fairness hearing will occur on November 4, where Apple and Nike will further discuss the terms of the settlement, who is responsible for attorney fees, and decide on a specific reward for the leader of the class in the settlement.