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Are Smartphone Class-Action Lawsuits Worth Your Time
Payouts often small but something is better than nothing
The exploding Samsung Galaxy Note 7 was among the most infamous smartphone public relations disasters. Incidents of devices catching fire, along with claims including performance problems, prompted lawsuits. AP Photos A mobile phone may be the most indispensable tool in our daily lives — 97 percent of U.S. adults own one, as do 92 percent of those 65 and older. In particular, the smartphone computers in our pockets have evolved into a for many. And when these products that we rely on so heavily don’t work as advertised; show signs of substandard quality; or have problems with safety, privacy or design, manufacturers often become the target of class-action lawsuits. Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. High-profile class-action lawsuits tied to smartphones include: The in older iPhonesAllegations that Apple provided customers with devices instead of new ones issues after an iOS 9 updateAccusations that Samsung over the device’s speed, andExploding smartphones Perhaps you received a postcard in the mail or email for one of these court cases. Did you fill it out? Should you bother? What about leading a claim against a manufacturer? Speak to a lawyer first
“If you believe you’ve been wronged by a company and want to lead a class-action lawsuit, I’d encourage you to first see if you have a case by speaking to an attorney or going through a website like the National Association of Consumer Advocates,” says President Scott Hardy of Top Class Actions, billed as the world’s most popular website for people to find cash they can claim from lawsuits and settlements. “And then you can decide if it’s worth your time to become a lead plaintiff.” Hardy thinks it can be in many cases. His Phoenix-headquartered platform reaches about 25 million people each month in the U.S., Canada and the United Kingdom, including a million people who receive a weekly newsletter. Entertainment $3 off popcorn and soft drink combos See more Entertainment offers > Don’t expect a windfall. But you’ll probably need only a minute or two to fill out the form, and you could get back tens, hundreds or thousands of dollars, says Hardy, who hasn’t seen any awards in the thousands. The calculation is time vs money
Not everyone agrees a little money is worth any of your time. Tim Bajarin, a veteran technology analyst and chairman of the San Jose, California–based market research firm Creative Strategies, says these kinds of smartphone-based class-action lawsuits don’t usually offer a decent payout to plaintiffs. “Most of the settlement amounts I have received from some of these types of settlements, based on the amount of those who could qualify, are as low 50 cents to the highest I have ever seen, [which] was about $4,” Bajarin says. “I have seen a settlement that went as high as $45, but the norm is well under $5 in many cases.” Some potential plaintiffs check to see if a company that has settled has fixed its problem, Bajarin says. But most people do nothing. Hardy says you have nothing to lose, so why not participate? You won’t know how much you could receive, but any money might be years away. AARP NEWSLETTERS %{ newsLetterPromoText }% %{ description }% Subscribe ? The biggest red flag is being asked to pay to join the plaintiffs, Blumenthal and Hardy say. “If you get one of these notifications and you are interested, I would pause, look up and see if there are any news articles about this,” Blumenthal says. “Know that these companies do have to reach out to people about these suits, so you should be able to quickly verify if it’s authentic.” Top Class Actions lists all authorized small and large settlement administrators, Hardy says. If it’s not on the site, it might not be legitimate. Marc Saltzman is a contributing writer who covers personal technology. His work also appears in USA Today and other national publications. He hosts the podcast series and is the author of several books, including Apple Watch for Dummies. More on home-family AARP NEWSLETTERS %{ newsLetterPromoText }% %{ description }% Subscribe AARP VALUE & MEMBER BENEFITS See more Health & Wellness offers > See more Flights & Vacation Packages offers > See more Finances offers > See more Health & Wellness offers > SAVE MONEY WITH THESE LIMITED-TIME OFFERS