Description: Last week a judge at the British Columbia Supreme Court approved Apple’s offer to pay up to $14.4 million to settle a class-action suit regarding its iPhone 6 and 7. At the heart of the case was a contention that Apple used software updates that deliberately slowed down the old phones once the iPhone 8 was on the market. Those who may have one of these old models ‘Tucked away in the sock drawer’ can hope to receive up to $150 if their phone matches the criteria.

Date:  March 4, 2024

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/apple-settlement-british-columbia-supreme-court-1.7098096

Discussion points:

1) How many of your classmates owned an iPhone 6 or 7? How many are planning to go after their piece of the settlement?

2) The story notes that Apple did not admit any wrongdoing. Why would a company adopt this strategy?

3) Page 11-21 of Wiley’s Financial Accounting: Tools for Business Decision-Making discusses Apple’s practice of stock splits. Why is no journal entry required for a stock split?