Apple to Pay $53M in iPhone 'Water Damage' Lawsuit

Apple is prepared to pay $53 million to the hundreds of thousands of people affected by a class action lawsuit that alleges the computer giant did not honor its warranties for iPhones and iPod Touches, reports Wired. While refusing to admit any wrongdoing, Apple would pay about $200 per person, according to settlement paperwork. The lawsuit claims Apple wouldn't honor warranties if a white indicator tape near the headphone jack had turned pink, a sign that, according to Apple, indicated water damage. But 3M, the maker of the tape, said humidity could also turn the tape pink. (More Apple stories.)