Apple To Pay $14.8M To iCloud Subscribers: Here's Why

Apple Inc AAPL has agreed t to pay out a $14.8 million class action settlement in a case involving iCloud data storage.

What Happened: The tech giant denied any wrongdoing, but settled the case to resolve the matter, according to Macworld. Apple was accused of using third-party servers to store some iCloud data, instead of its own, which violated the terms of service.

While iCloud provided users with 5 GB of free storage, many users needed additional space to back up their devices and paid to get larger storage options.

Some of the users who paid the additional fee will receive a check as part of the settlement, a Final Approval Hearing in the case will be held on August 4.

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Why It Matters: Those eligible for payments in the deal are iCloud subscribers who were making monthly payments of at least $0.99 for the service.

Those who qualify to receive money from the settlement paid for extra iCloud storage from Sept. 16, 2015 to Jan. 31, 2016. They also need to have had a U.S. mailing address associated with their iCloud account during that period of time. The settlement does not apply to anyone outside the United States.

At the time, iCloud storage ranged from $0.99 for 50 GB of cloud space to $10 for 1 TB of space. Most of those receiving a payment from the settlement will be getting a check for $2.79.