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Nike+ FuelBand Owners Receive Payout Following Class-Action Suit

Tim Maytom

FuelBandNike and Apple have settled a class action lawsuit the two companies were facing over the athletic brand's Nike+ FuelBand wearable, resulting in a payout for owners who purchased the device.

The lawsuit plaintiffs alleged that both Nike and Apple made false claims about the device's ability to work as a fitness tracker. According to the suit, the device's ability to measure steps and calories, as well as calculate NikeFuel points, was not accurately portrayed, and both companies failed to properly follow through on the terms of the product's warranty.

While both Nike and Apple deny the claims, they have apparently agreed to settle to "avoid the expense, inconvenience, and distraction of continued litigation". Anyone in the US who purchased a FuelBand from its original release on 19 January 2012 up to 17 July of this year can submit a claim and receive either a $25 (£16) Nike gift card or $15 cheque from Nike. It's not been disclosed how the payments are being split between Apple and Nike, although both companies agreed to the terms of the settlement.

Nike stopped development of new FuelBand models last year, but has continued to sell the wearables up until recently. While the settlement is unlikely to have major legal ramifications for either the companies involved or the fitness tracking industry in general, it's possible developers may grow a little more cautious in terms of describing what exactly their devices and software is capable of to avoid similar lawsuits.

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