Apple has settled a class-action lawsuit filed against the company related to Powerbeats 2 headphones. The tech giant has agreed to pay $9.75 million for this settlement, saying that it denies all allegations, reports MacRumors.

There was no ruling by the court as both the parties in the case have agreed to a settlement. Apple says that it is paying the settlement fee to avoid expensive litigation. As a part of the settlement, the $9.75 million will be split between all plaintiffs who submit claim forms (one payment per household) after attorneys’ fees and related costs are paid.

Customers who have purchased new Powerbeats 2 earbuds before August 7, 2020 can make a claim for payment from the settlement. The claims can be submitted online through the settlement website before November 20, 2020.

The settlement amount will be given based on a points system. Authorized claimants who have no proof of purchase receive one point, while those with a valid proof of purchase or warranty repair receive two points. The net settlement amount will then be divided by total points claimed and the individual awards will be calculated from that amount.

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Latanya Simmons and Kevin Tobin had filed the initial complaint on behalf of a wide class of device owners in 2017. The lawsuit claimed that the company falsely advertised the product’s robustness, waterproofness, and battery life claims.

The lawsuit claimed breach of express warranty, breach of the Song-Beverly Act, violation of the California Consumers Legal Remedies Act, violation of the Unfair Competition Law, unjust enrichment, common law fraud, and negligence.

The claimants are eligible for a maximum payout of $189, multiplied by the number of valid proofs of purchase. As per the estimates, claimants without proof of purchase will receive $38, while those with proof of purchase or warranty repair will get around $76.

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