The Tabak v. Apple class action settlement is a $35 million deal resolving claims that the iPhone 7 and iPhone 7 Plus contained an audio hardware defect known as “Loop Disease.” The court granted final approval on October 30, 2024. Eligible class members who filed a claim received between $50 and $349, depending on whether they had paid Apple out of pocket for a repair. The claim deadline was July 3, 2024, and it has passed. If you did not submit a payment attestation form by that date, you are no longer eligible for a payment from this fund.
What the Defect Did to iPhone 7 Owners
The lawsuit alleged that the external casing of the iPhone 7 and 7 Plus was not strong enough to protect internal components during normal handling. Over time, the casing could flex enough to break the solder connection between the audio IC chip and the logic board. Once that connection failed, the phone’s audio system started breaking down.
The most recognizable symptom was a grayed-out speaker button during phone calls, which made it impossible to switch to speakerphone. Other signs included the Voice Memo app refusing to record, microphones failing during Siri commands, no sound from the earpiece, and Lightning headphones or adapters not working. Some phones became slow to power on or stopped responding entirely. According to the plaintiffs, the defect developed through ordinary use rather than misuse.
Apple denied all allegations and admitted no wrongdoing. The company settled without any finding of liability.
Who Was Included in the Class
The settlement class covered individual U.S. residents who owned an iPhone 7 or iPhone 7 Plus at any point between September 16, 2016, and January 3, 2023, and who reported an audio-related issue to Apple in the United States during that period. That included people who paid Apple directly for a repair or replacement tied to the defect, based on Apple’s own records.
Apple itself, its subsidiaries, directors, officers, employees, and legal representatives were excluded, along with the judicial officers assigned to the case and their immediate staff and families.
How Much Class Members Received
The settlement split eligible people into two tiers, each paid on a pro-rata basis from the net fund:
- Class members who paid Apple out of pocket for a repair or replacement related to the audio defect were eligible for a cash payment between $50 and $349.
- Class members who reported the audio problem to Apple but did not pay out of pocket for a repair were eligible for up to $200.
Everyone within a given tier received the same dollar amount. The actual figure depended on how many valid claims came in: more claimants meant a smaller individual share, fewer meant a larger one. The pro-rata structure was designed to distribute the entire net fund rather than leave money unpaid.
The $35 million fund also covered court-approved attorneys’ fees and the administrative cost of running the claims process.
The Claim Deadline Has Passed
Unlike some class action settlements that pay class members automatically, Tabak required people to submit a payment attestation form with basic personal information and a chosen payment method. Forms could be filed online at smartphoneaudiosettlement.com or by mail. The original deadline was June 3, 2024, and it was extended once to July 3, 2024.
The final approval order came down on October 30, 2024, after a final approval hearing on July 18, 2024, and additional briefing ordered by the court. If you did not file a form by the July 2024 cutoff, there is no longer a way to claim a payment from this settlement.
Any settlement checks that go undelivered or uncashed after 120 days first cover unexpected administrative costs. Anything left over is directed to Girls Who Code as the cy pres recipient.
Are the Payments Taxable?
Payments from this settlement are likely taxable. The IRS treats almost all income as taxable under Internal Revenue Code Section 61 unless a specific exclusion applies. The main exclusion, in IRC Section 104, covers damages received for personal physical injuries. Because Tabak v. Apple involved a defective product and breach of warranty rather than physical injury to a person, payments would not qualify for the Section 104 exclusion and should be reported as income on a federal tax return. Anyone who received a check should confirm the treatment with a tax professional.
Don’t Confuse This With Williams v. Apple
Tabak v. Apple is sometimes mixed up with Williams v. Apple Inc., a separate class action alleging that Apple stored iCloud subscriber data on third-party servers run by Amazon and Google. That case produced a $14.8 million settlement covering people who paid for iCloud subscriptions between September 16, 2015, and January 31, 2016. It involves a different product, a different time period, a different amount, and a different class. An iCloud storage complaint belongs to Williams, not Tabak.