Nike and Apple Settle Class Action Lawsuit for FuelBand

Nike and Apple Settle Class Action Lawsuit for FuelBand

Apple and Nike have reached a settlement in class action lawsuit filed against the companies for misleading advertising related to fitness tracker FuelBand. As a settlement, Nike will make a payment of $15 to each customer of FuelBand. Consumers can also opt for $25 gift credit from Nike.

The settlement will be applicable to customers who purchased FuelBand between January 19, 2012 and June 17, 2015. Apple stopped selling FuelBand at its stores in March this year. Nike stopped sales of FuelBand in June 2015.

Customers can file their claim online till January 4, 2016. The payments to customers and legal fees will be paid by Nike. As per the terms of the settlement, Apple will not pay any fees.

The plaintiffs had alleged that Apple and Nike made false claims about their fitness tracker. Both the companies continued selling the product when they were aware that it was not offering correct reading for calorie consumption and steps taken by wearer.

Nike and Apple both denied the charges. In a joint statement, Apple and Nike said that they have settled the lawsuit in order to avoid the expense, inconvenience, and distraction of continued litigation. Nike will stop manufacturing new FuelBands and the company will focus on software.

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