In Re: MacBook Keyboard Litigation

Background

Consumers alleged that certain MacBook “butterfly” keyboards were defective because they failed within a year and repairs or replacements did not resolve the problems. The operative complaint asserted ten consumer-protection, fraud, and warranty causes of action under California, Washington, Florida, Illinois, New Jersey, New York, and Michigan law. The court had previously certified a seven-state class and set a trial date for March 21, 2023.

The parties reached a settlement after extensive discovery, motion practice, expert work, and mediation. The settlement class covers people and entities in the United States who purchased, other than for resale, specified MacBook, MacBook Air, and MacBook Pro models from the relevant model years. Apple denied liability and agreed to pay $50 million into a non-reversionary fund without admitting wrongdoing.

Settlement Terms

The settlement provides three payment groups:

- Group 1 includes class members who had at least two full keyboard replacements within four years of purchase. They will receive between $300 and $395 per qualifying computer, with payments made automatically from Apple’s records. - Group 2 includes class members who had one full keyboard replacement within four years of purchase. They may receive up to $125 per computer, but must submit a claim confirming that the repair did not resolve the keyboard problem. - Group 3 includes class members who had one or more keycap replacements within four years of purchase. They may receive up to $50 per computer and must submit a similar claim.

Class members also remain eligible for Apple’s Keyboard Service Program for qualifying repairs for up to four years after purchase. The settlement provides for additional payments to eligible members if funds remain after the initial distribution, and potentially a later distribution to a court-approved recipient if payment caps are reached.

Notice and Objections

The settlement administrator provided notice through email, mail, a settlement website, telephone support, and dedicated email and postal contacts. The court found that the notice procedures were reasonably designed to inform class members and provide an opportunity to object or request exclusion.

Six people—Cody Loepp, James Finney, Leslie Parker, Jennifer Yellin, Kyle Kavanagh, and John Hawkinson—objected or submitted filings treated as objections. Their concerns included the payment amounts, the exclusion of people who experienced keyboard problems without receiving repairs, proof-of-repair requirements, and the content of the notices and settlement website. The court overruled all six objections.

Court’s Rulings

The court found that the settlement class satisfied the requirements for class certification for settlement purposes. It also found that the settlement was fair, reasonable, and adequate, considering the strength and risks of the claims, the extensive discovery, the stage of the litigation, the settlement amount, the quality of notice, and the class’s reaction.

The court granted the motion for final approval of the proposed class action settlement. It also granted the motion for attorneys’ fees, reimbursement of litigation expenses, and service awards. The order awarded class counsel $15,000,000 in attorneys’ fees and $1,559,090.75 in litigation costs. It awarded $5,000 to each of the eleven class representatives and the plaintiff in the related state-court action. The court retained jurisdiction over matters involving the settlement’s administration and enforcement and required a post-distribution accounting.