Judge Says No Conspiracy in iPhone Power Button Case
Did Apple (NASDAQ:AAPL) and AT&T (NYSE:T) put consumers in danger by conspiring to hide an iPhone 4 and iPhone 4S power button defect? Not according to U.S. District Judge Gary Allen Feess, who recently dismissed the claims against the two companies, reports GigaOM.
Judge Feess threw out a RICO (Racketeer Influenced and Corrupt Organizations Act) class action suit against Apple and AT&T this week that was brought by two iPhone owners. In the lawsuit, Ross Missaghi and Charles Thompson alleged that the two companies formed a conspiracy to conceal problems with a defective power button on the iPhone 4 and iPhone 4S models.
According to papers filed with the court, the plaintiffs alleged that the conspiracy was “part of a scheme to sell additional [Apple] cellular phones in the period following the manifestation of the defect, and before the expiration of the individuals’ cell phone carrier contracts.” However, the judge dismissed the RICO claim against Apple, noting that, “The claims against Apple cannot be said to be intimately founded in and intertwined with the underlying contract.”