iPhone Gets Sued

By Mike Schuster Feb 05, 2009 12:45 pm

Brief scrutiny of today's headlines.

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Despite 13 million in sales and countless rabid Apple (AAPL) fanboys, some disgruntled iPhone owners are bringing a class action lawsuit against both Apple and AT&T (T). In the last 2 weeks, 4 separate lawsuits have been leveled against the companies, claiming the popular mobile phone can't adequately maintain a connection to AT&T's 3G network.

Residents in Florida, New Jersey and Texas have filed similar injunctions to express their dissatisfaction with the companies' "false and misleading advertising," which touted the speed and reliability of the iPhone. In addition to complaints over the congested 3G network, a pair of filings also report shoddy iPhone casings, which result in hairline cracks near the camera and volume rocker.

The lawsuits cite a report in the Swedish engineering weekly Ny Teknik, which asserts that some iPhones aren't sensitive enough to pick up 3G signals and are then throttled to AT&T's much slower EDGE network. Printed with the article are several message-board comments from users who -- though directly within the 3G coverage map -- are still relegated to the EDGE connection.

The lawsuits do not list a specific dollar amount, but ask instead for statutory, compensatory and punitive damages - plus interest.

Apple and AT&T have yet to release a statement; however, in August 2008, Apple acknowledged a problem with 3G network connections and dropped calls. The company subsequently released a firmware patch to fix those issues. Unfortunately, it didn't work for everyone.

All in all, if a glitchy handheld mobile device can incite monetary compensation, expect a flood of BlackBerry Storm owners to head to court.Twitter: @mcs212