Case 5:21-cv-07109-SVK Document 1 Filed 09/14/21 Page 1 of 29
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`BURSOR & FISHER, P.A.
`L. Timothy Fisher (State Bar No. 191626)
`Sean L. Litteral (State Bar No. 331985)
`1990 North California Blvd., Suite 940
`Walnut Creek, CA 94596
`Telephone: (925) 300-4455
`Facsimile: (925) 407-2700
`Email: ltfisher@bursor.com
` slitteral@bursor.com
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`
`Attorneys for Plaintiff
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`
`
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`v.
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`Plaintiff,
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`
`
`UNITED STATES DISTRICT COURT
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`NORTHERN DISTRICT OF CALIFORNIA
`
` Case No.
`NESTOR ALMEIDA, individually and on behalf
`of all others similarly situated,
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`CLASS ACTION COMPLAINT
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`JURY TRIAL DEMANDED
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`APPLE, INC.,
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` Defendant.
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`CLASS ACTION COMPLAINT
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`Case 5:21-cv-07109-SVK Document 1 Filed 09/14/21 Page 2 of 29
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`Plaintiff Nestor Almeida (“Plaintiff”) brings this action on behalf of himself and all others
`similarly situated against Defendant Apple, Inc. (“Apple” or “Defendant”) for the manufacture,
`marketing, detailing, distribution, and sale of the Apple M1 MacBook Air and M1 MacBook Pro
`(“M1 MacBook”). Plaintiff makes the following allegations pursuant to the investigation of his
`counsel and based upon information and belief, except as to the allegations specifically pertaining
`to himself, which are based on personal knowledge.
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`NATURE OF ACTION
`1.
`This action is brought on behalf of purchasers of Apple’s M1 MacBook, including
`model years 2020 and 2021. Apple markets and sells the M1 MacBook as a top-of-the-line
`computer, debuting on November 10, 2020 with a hefty price tag of $999 for the M1 MacBook Air
`and $1,299 for the M1 MacBook Pro. But the M1 MacBook is defective, as the screens are
`extraordinarily fragile, cracking, blacking out, or showing magenta, purple and blue lines and
`squares, or otherwise ceasing to function altogether (the “Defect”). Thousands of users from
`across the globe have reported this issue directly to Apple and on Apple sponsored forums.
`Nonetheless, consumers who have attempted to secure replacements or repairs have been rebuffed
`by Apple, often forced to pay out of pocket upwards of between $600 and $850 for repairs
`themselves or to secure replacements without Apple’s assistance. Others who have secured repairs
`or replacements from Apple have quickly experienced the problem reappearing on the repaired or
`replaced laptop.
`2.
`Despite its knowledge of this issue from its own internal testing and user
`complaints, Apple did not publicly recognize the issue until August 27, 2021. At that time, Apple
`informed consumers that “[t]o enable the thin design of Mac notebook computers, the clearance
`between the display (screen) and the top case is engineered to tight tolerances.” Inadvertently
`admitting the existence of the Defect, Apple proceeded to caution its users, suggesting that “[i]f
`you use a camera cover, palm rest cover, or keyboard cover with your Mac notebook, remove the
`cover before closing your display. Leaving any materials on your display, keyboard, or palm rest
`might interfere with the display when it’s closed and cause damage to your display.” But as the
`comments reported below demonstrate, the Defect manifests independently of these considerations.
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`CLASS ACTION COMPLAINT
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`Case 5:21-cv-07109-SVK Document 1 Filed 09/14/21 Page 3 of 29
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`In fact, many users, including Plaintiff, does not use any of the covers Apple mentions. Instead,
`the issues develop on their own without user interference.
`3.
`Accordingly, Plaintiff brings his claims against Defendants individually and on
`behalf of a class of all others similarly situated for (1) Fraudulent Concealment; (2) Violation of the
`New Jersey Consumer Fraud Act, N.J. Stat. Ann. § 56:801, et seq.; (3) Breach of Express
`Warranty, N.J. Stat. Ann. § 12A:2-313; (4) Breach of the Implied Warranty of Merchantability,
`N.J. Stat. Ann. § 12A:2-314; and (5) Breach of Contract / Common Law Warranty.
`
`THE PARTIES
`4.
`Plaintiff Nestor Almeida is, and at all times relevant to this action has been, a citizen
`of Belleville, New Jersey. In or around January 2021, Plaintiff Almeida purchased his M1
`MacBook Pro directly from Apple at their online store, www.apple.com. Prior to his purchase of
`the M1 MacBook, he did not know, nor could he have known through reasonable diligence, of the
`Defect in his laptop. Due to the Defect, Plaintiff’s laptop did not operate as Defendants warranted
`and promised in their advertisements, representations, and the information publicly available in the
`marketplace. For example, during Plaintiff’s use of his M1 MacBook, his screen will display
`magenta squares and the whole screen will go black. Additionally, none of the packaging in which
`the M1 MacBook was sold revealed that there was a Defect. Accordingly, not only was Plaintiff’s
`M1 MacBook defective at the point of sale due to the Defect, but Apple has exacerbated the
`problems via their misrepresentations and omissions concerning the M1 MacBook’s screen. As a
`result of Apple’s actions, Plaintiff did not receive the benefit of his bargain and was injured as a
`result. If Plaintiff had been told of this Defect and the deceptive manner in which Apple would
`conceal this Defect, Plaintiff would not have purchased his M1 MacBook, or would have paid
`substantially less.
`5.
`Defendant Apple, Inc. is incorporated under the laws of the State of California and
`maintains its principal place of business in Cupertino, California.
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`JURISDICTION AND VENUE
`6.
`This Court has subject matter jurisdiction pursuant to 28 U.S.C. § 1332(d)(2)(A)
`because this case is a class action where the aggregate claims of all members of the proposed class
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`Case 5:21-cv-07109-SVK Document 1 Filed 09/14/21 Page 4 of 29
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`are in excess of $5,000,000.00, exclusive of interest and costs, and Plaintiff, as well as most
`members of the proposed class, are citizens of states different from Defendants. This Court also
`has supplemental jurisdiction over state law claims pursuant to 28 U.S.C. § 1367.
`7.
`This Court has personal jurisdiction over Apple because its principal place of
`business is within this District and it has sufficient minimum contacts in California to render the
`exercise of jurisdiction by this Court proper and necessary.
`8.
`Venue is proper in this District under 28 U.S.C. § 1391(b) because a substantial part
`of the events or omission giving rise to Plaintiff’s claims occurred in this District.
`9.
`The practices described herein were conceived, reviewed, approved, and otherwise
`controlled from Apple’s headquarters in Cupertino, California, Employees at Apple’s headquarters
`directed the production and assembly of the M1 MacBook’s hardware and software, including the
`defective screens. Promotional activities and literature were developed and coordinated at, and
`emanated from, Apple’s California headquarters. The launch event for the M1 MacBook occurred
`in Cupertino. Apple made critical decisions about the development, marketing, and advertising of
`the M1 MacBook in California. Misrepresentations and omissions alleged herein were made by
`Apple employees based in California and were contained, among other places, on Apple’s website,
`which is maintained by Apple employees based in California. Warranty policies and procedures
`also were developed and carried out by Apple employees in Cupertino.
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`A.
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`FACTUAL ALLEGATIONS
`Apple Releases The M1 MacBook, Emphasizing the Interrelationship
`Between The M1’s Superior Technology And Screen Display Capabilities
`10.
`Apple debuted the M1 MacBook on November 10, 2021 to great fanfare. Apple
`announced that “[o]n a momentous day for the Mac, [we] today introduced a new MacBook Air,
`13-inch MacBook Pro and Mac mini powered by the revolutionary M1, the first in a family of
`chips designed by Apple specifically for the Mac.”1 Apple’s CEO, Tim Cook, referred to the
`launch of the new products, saying that “[t]he introduction of three new Macs featuring Apple’s
`
`1 Apple, “Press Release: Introducing the Next Generation of Mac,” Newsroom (Nov. 10, 2020),
`Available at https://www.apple.com/newsroom/2020/11/introducing-the-next-generation-of-mac/
`(last visited Sept. 14, 2021)
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`Case 5:21-cv-07109-SVK Document 1 Filed 09/14/21 Page 5 of 29
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`breakthrough M1 chip represents a bold change that was years in the making, and marks a truly
`historic day for the Mac and for Apple.”2
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`Connecting this superior technology to the display, Apple proclaimed that “[w]ith
`up to an 8-core GPU, graphics are up to 5x faster, the biggest leap ever for MacBook Air, so
`immersive, graphics-intensive games run at significantly higher frame rates.”3 Apple continued
`that users can “[i]ntegrate 3D effects into video in Final Cut Pro up to 5x faster” and that users can
`“[f]or the first time, play back and edit multiple streams of full-quality, 4K ProRes video in Final
`Cut Pro without dropping a frame.”4 Alongside the below photograph, Apple also informed
`consumers that they could “[w]atch more movies and TV shows with up to 18 hours of battery life,
`the longest ever on MacBook Air.”5
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`2 Id.
`3 Id.
`4 Id.
`5 Id.
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`Case 5:21-cv-07109-SVK Document 1 Filed 09/14/21 Page 6 of 29
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`12.
`Apple then informs consumers that the M1 MacBook also features “[s]upport for P3
`wide color” that “results in an even more vibrant, true-to-life Retina display.” Apple writes that
`“[w]ith its sleek wedge-shaped designed, stunning Retin display, Magic Keyboard, and astonishing
`level of performance thank to M1, the new MacBook Air once again redefines what a thin and light
`notebook can do.” Apple then sets these comments out alongside the following photograph of the
`M1 MacBook display:
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`13.
`Apple then repeats several of these representations for the M1 MacBook Pro. Apple
`suggests that users can “[p]lay back full-quality, 8K ProRes video in DaVinci Resolve without
`dropping a single frame.” Apple also notes that the M1 MacBook Pro “features two Thunderbolt
`ports with USB 4 support to connect to more peripherals than ever, including Apple’s Pro Display
`XDR in full 6K resolution.” Providing its most complimentary statements on the laptop, Apple
`writes that “[w]ith its amazing performance and unbelievable battery life, combined with its
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`Case 5:21-cv-07109-SVK Document 1 Filed 09/14/21 Page 7 of 29
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`gorgeous Retina display, Magic Keyboard, and 3-pound compact design, the new 13-inch
`MacBook Pro is the ultimate expression of what the M1 chip can do.”6
`14.
`These representations are expanded upon during Apple’s November 10, 2020 live
`streaming in connection with the M1 MacBook’s release. Alongside the following photograph,
`Apple writes that “users love [the M1 MacBook’s] stunning retina display, great everyday
`performance, and incredibly portable, wedge-shaped design.”7
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`15.
`Apple reports that “we’re thrilled that M1, our first chip for the Mac, enables the
`MacBook Air to do things that were previously impossible on such a thin and light notebook.”
`Apple explained that “[s]o, it you’re editing family photos or exporting a video for the web with
`iMovie the new Air blazes right through it.”
`16.
`Apple then suggests, alongside the below photograph, that the M1 chip combined
`with the retina display and “the world’s fastest integrated graphics” allows consumers to “turn[]
`[their] Air into a mobile photo studio.”
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`6 Id.
`7 Apple, “Apple Event – November 10,” Available at
`https://www.youtube.com/watch?v=5AwdkGKmZ0I (last visited Sept. 14, 2021).
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`Case 5:21-cv-07109-SVK Document 1 Filed 09/14/21 Page 8 of 29
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`17.
`Alongside the following photograph, Apple states that “with the world’s fastest
`integrated graphics that feature up to eight cores, Air delivers up to five times faster graphics
`performance. That’s the biggest leap ever for MacBook Air. So when it comes to gaming, you can
`play immersive, graphically-intensive titles at significantly higher frame rates.”
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`Case 5:21-cv-07109-SVK Document 1 Filed 09/14/21 Page 9 of 29
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`18.
`Finally, Apple suggests that “[i]n fact, everything looks stunning on the 13-inch
`Retina display, which now supports P3 wide color for even more vibrant, true-to-life images.”
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`19.
`However, as Plaintiff’s experience, as well as the sampling of the thousands of
`comments publicly available online, demonstrates, not everything “looking stunning on the 13-inch
`Retina display,” especially not the cracking, blacking out, or magenta, purple and blue lines and
`squares that emerge on the screen within hours of powering up the M1 MacBook for the first
`time—which is consistent with user experiences as demonstrated below.
`
`B.
`Consumers Experiences With The M1 MacBook’s Screen
`20.
`The internet is replete with complaints from consumers who have expressed
`dissatisfaction about the Defect on Apple’s own website and numerous articles have been written
`concerning these complaints. These complaints began immediately following Apple’s first sales of
`these devices. These complaints reveal numerous things about how Apple has handled this screen
`issue. First, as the complaints below make clear, several Apple technicians begin by denying that
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`Case 5:21-cv-07109-SVK Document 1 Filed 09/14/21 Page 10 of 29
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`the Defect is widespread and often suggest that the Defect must have resulted from the user’s
`carelessness or negligence in protecting their $999 or $1299 device. Second, at the same time that
`numerus Apple technicians deny that the problem exists, other Apple technicians have clearly
`articulated that the issue is widespread and that numerous users have reported the issue to them and
`their colleagues. Third, despite this latter admission, Apple has failed to uniformly address the
`issue, forcing some users to pay for the repairs out of pocket, by saying that the repairs are not
`covered under warranty or otherwise, requiring the user to handle the repair themselves. Fourth,
`user comments have been deleted by Apple on Apple’s forums, suggesting that Apple has long
`been aware of these issues. Fifth, only after months of comments such as those below, did Apple
`first publicly acknowledge that its screens are susceptible to cracking, discoloration, and blacking
`out.
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`21.
`On December 3, 2020, for example, one user wrote on MacRumors.com the
`following: “working on my M1 in bed. Put it next to me for like thirty seconds on a soft duvet to
`take a call. Pick it back up to this damaged screen.” The user reported that the M1 MacBook
`“wasn’t bumped, hit or damaged in any way. There is no crack or mark whatsoever. The screen is
`perfectly smooth, with no marks. Just suddenly happened.” The user then included the following
`photograph:
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`22.
`On May 23, 2021, another user took to Apple’s forum8 to write that I bought a
`MacBook Air M1 6 months ago and the screen cracked for no apparent reason. I left my computer
`on the top of my desk during the night and the next day I opened it the screen had 2 small cracks on
`the right which damaged the functioning of the screen. I contacted an authorized apple center
`which told me apple warranty would not cover it as it is a contact point crack; as if I have left
`something the size of a rice berry between the screen and the keyboard . . . It is absurd as I have
`nothing like it on my desk and the computer was properly closed as usual and didn’t move the
`whole night. More than the price of repairing it, it is frustrating that apple doesn’t believe its
`customers.”
`23.
`On May 27, 2021, another user took to Apple’s forum to write that the “same thing
`happened to me. The laptop was sitting on my desk and when I opened it was broken, and showing
`bars. This seems to be a design flaw and it has been reported by several users on reddit.”
`24.
`On June 3, 2021, another user took to Apple’s forum to write that Happen[ed] to me
`as well! They are not willing to take responsibility! I am not planning to give up. Doesn’t make
`any sense that a computer that is brand new and sitting on the desk can break this way. If they
`have problems with the retina screen they just need to admit that.”
`25.
`On June 28, 2021, another user wrote on Apple’s forum to write “Same thing here.
`Sitting on my desk – came home opened it and it was cracked.”
`26.
`On July 14, 2021, another user took to Apple’s forum to write We bought an M1
`Macbook Air 4 months ago. Last weekend my wife was watching a movie on Netflix and adjusted
`the screen at the end to change the viewing angle. The screen black out except for an area on the
`left which had bright lines in an irregular pattern.” The user continued that “have taken the MBA
`to the local Apple store and they advise[d] me that my wife caused the pressure crack and it is not
`covered under warranty. Cost to repair is [$539]. This leaves a very sour taste. The screen should
`not break when the screen angle is changed.”
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`8 https://discussions.apple.com/thread/252794122?answerId=255634544022&page=4 (last
`accessed Sept. 14, 2021).
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`27.
`On July 23, 2021, another user wrote on Apple’s forum that “My 17 [year old]
`daughter was at her desk, working on her MacBook Pro (M1 display) and shut it to take a break.
`When she went back to work, on opening the device she noticed that the bottom of the display was
`covered by flickering black and white lines and that there were also perpendicular coloured lines
`on the left hand side of the screen.” The user also reported that “I assumed that, (oh, the naivety)
`as it is less than 5 months old and that it hadn’t been dropped, bashed, dinged, or had anything
`spilled on it, this would be a case of taking it to our local apple store for a straight replacement. A
`call to Apply swiftly disabused me of any hope of a simple solution.”
`28.
`On July 24, 2021, another user took to Apple’s forum to write “Have the same issue
`and Apple won’t fix it.”
`29.
`On July 29, 2021, another user took to Apple’s forum to write that “As of this
`morning, I, too, have the same issue. Turned my M1 Macbook Pro on as usual and the screen was
`obviously cracked. I have done nothing to cause this.”
`30.
`On July 30, 2021, another user wrote on Apple’s forum that “I have just experienced
`the same thing. On July 28th I closed my laptop to take the dog outside. I came back in and
`opened up the laptop and there was a crack. It was very confusing as I could not understand how
`this would have happened. Took the Mac to the apple store and was told right off the bat ‘I will
`tell you what you did here” and it was explained how I must have closed the lid on something.
`When I said that did not happen they said I must have pushed down on it or held it wrong. I have
`not abused or dropped this laptop . . . If you cannot afford to replace a $700 screen choose a
`different laptop.”
`31.
`On July 30, 2021, another user wrote on Apple’s forum that “This happened to me
`too. Closed the lid of my laptop to carry it from the lounge to the bedroom. When I opened the lid
`there were two hairline cracks emanating from the bottom left corner. There had certainly been no
`debris under the screen and no undue pressure exerted.”
`32.
`On July 30, 2021, another user wrote on Apple’s forum that “I just had the exact
`same situation. I have a Macbook Air M1. I went to sleep with it in perfect condition. The next
`day I opened the screen and the display had internal cracks and black bars running through it . . . I
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`Case 5:21-cv-07109-SVK Document 1 Filed 09/14/21 Page 13 of 29
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`took it to Apple and they said the exact same thing to me . . . that I ‘closed the lid with something
`very small in between the lid and the keyboard. I had nothing in between the screen. The laptop
`was perfectly clean and handled with care when I last used it working perfectly until the next time
`opening the lid. They said warranty would not cover it because I had damaged it so I had to spend
`$460 for repairs.”
`33.
`On July 30, 2021, another user wrote on Apple’s forum that “had same issue – apple
`charged me over $500 to fix no matter what I said.”
`34.
`On August 1, 2021, another user reported to Apple’s forum that “Personally I found
`the striped screen overnight, three small lines. I don’t think it was me. I do not know what to do.”
`35.
`On August 1, 2021, another user reported to Apple’s forum that “Yes I also had the
`same [issue on the] left side of my screen [which] started to have these rainbow lines and when I
`looked at it I [saw] these cracks at the bottom of the screen.”
`36.
`On August 1, 2021, another user report to Apple’s forum that “I purchased an [M1]
`for my son [on] June 10th. July 10th he woke up, opened the computer only to see that the screen
`had a crack in it. Without apple care, it would have cost $650 to get it repaired. The computer was
`not dropped, there was no damage whatsoever. The crack just developed overnight, for no
`apparent reason.”
`37.
`On August 1, 2021, another user reported on Apple’s forum that “The same
`happened to me. I bought the computer 3 months ago. It is frustrating that they are saying that I
`did something to the computer. I don’t want to repair it because if it is a defect the same is going
`to happen with the new screen and I just would [have] spent $400 dollars. So, I don’t want the
`computer anymore.”
`38.
`On August 1, 2021, another user reported on Apple’s forum that “I had the same
`issue a couple of weeks ago with my wife’s [M1], but the technician decides that was our fault and
`we have to pay 500 dollars.”
`39.
`On August 1, 2021, another user reported on Apple’s forum that “I bought a M1
`Macbook Air in November 2020, and the screen cracked in March 2021. Apple support told me
`that I probably left something between the keyboard and the lid, but I did not.”
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`Case 5:21-cv-07109-SVK Document 1 Filed 09/14/21 Page 14 of 29
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`40.
`On August 2, 2021, another user reported on Apple’s forum that “My daughter has
`the same issue. She saved up to buy a Macbook Air M1 for college and the screen now has an
`internal crack without any misuse. The glass itself is not cracked but the screen is on the inside.
`We’ve contacted Apple Support numerous times over chat [and] they want to charge her close to
`$500 to have it mailed in and screen replaced . . . She does not want to pay the repair costs and I
`don’t blame her given the number of people reporting the issue. Now she is faced with starting her
`freshman year at college with a nice shiny [M1] with a cracked screen! Hopefully Apple will take
`notice and help out its loyal customer base who shouldn’t be having to pay to repair products with
`faulty designs.”
`41.
`On August 2, 2021, another user reported on Apple’s forum that “I have the same
`problem. The screen cracked the same day after purchase! Macbook worked for about 6 hours and
`a small crack appeared, which disabled the entire monitor.”
`42.
`On August 2, 2021, another user reported on Apple’s forum that “Just to add my
`response to this thread . . . Screen cracked and [has] black vertical bars down the left and horizontal
`along the bottom. This cracked while being opened sat on a table, from no more than the pressure
`of opening the lid. No crumbs or other [debris] on the keyboard or anything like that, perfectly
`clean and never dropped or otherwise mishandled . . . Apple support [has] been absolutely
`shocking during this whole thing, absolutely sticking their head in the sand that there might be
`some inherent issue and that we’re all not just smashing up our screens ourselves.”
`43.
`On August 2, 2021, another user reported on Apple’s forum that “I have also had
`multiple posts removed owing to my comment suggesting that the company who made my laptop
`might be aware of the design fault and the number of customers who have issues with it and might
`not want to accept the (potentially very expensive) liability for the repairs.”
`44.
`On August 3, 2021, another user reported on Apple’s forum that “This happened to
`me also. I had the laptop for 3 months. Closed it one day, opened it back up and the screen was
`cracked for no apparent reason. I had to pay $590 to get the screen replaced. I am so angry that
`this happened.”
`
`CLASS ACTION COMPLAINT
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`Case 5:21-cv-07109-SVK Document 1 Filed 09/14/21 Page 15 of 29
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`45.
`On August 4, 2021, another user reported on Apple’s forum that “This also
`happened to me. I keep my M1 Macbook Air closed and connected to monitors. I rarely ever even
`touch the thing. Today when cleaning the dust off I noticed a very visible crack appeared in the
`lower right screen right next to the right hinge on the screen. I took the [M1] to a local apple store
`and the technician implied it was not covered by warranty and that I had to shell out $400 to fix the
`screen.”
`46.
`On August 4, 2021, another user reported on Apple’s forum that “I had the exact
`same problem . . . my Macbook Air M1 was purchased in February of this year and I opened the lid
`to have a crack on the left hand side with no apparent external damage as the Mac sits on my desk
`as well . . . Screen replacement costs are quite expensive and it’s a shame this isn’t covered under
`Apple’s warranty as it is classified as “accidental damage.”
`47.
`On August 4, 2021, another user reported on Apple’s forum that “The same thing
`happened with me. I bought the MBA M1 [on] January 21. One day I just woke up and opened it
`had a fish shaped crack – when I contacted Apple Service they said it won’t be covered by the
`warranty since it falls under ‘physical damage’ – I told them I always treated it with utmost care. I
`am an international student and this is my first Apple product. I cannot afford to repair it – I do not
`have the money. I do not know what to do now.”
`48.
`The fact that so many consumers made similar complaints about the Defect
`indicates that the complaints were not the result of individual circumstances or user errors, but
`instead a systematic problem with the M1 MacBook’s screen.
`
`C.
`Other Sources Of Apple’s Knowledge Of The Defect
`49.
`In addition to examples of the user reports set out above, including Apple’s deletion
`of some comments, Apple would have long known about the Defect from multiple other sources,
`including through its extensive pre-release testing, its own technicians who repaired and reported
`the problems, its online reputation management, as well as its own statement on the Defect.
`Accordingly, Apple was under a duty to disclose that the M1 MacBooks were defective because it
`knew of the Defect. Nonetheless, Apple concealed this knowledge and has continued to sell the
`M1 MacBooks.
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`CLASS ACTION COMPLAINT
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`Case 5:21-cv-07109-SVK Document 1 Filed 09/14/21 Page 16 of 29
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`50.
`First, Apple would have known about the Defect through its own extensive pre-
`release durability testing which it does on all of its products, including the M1 MacBooks. Apple
`has previously acknowledged that “every new product requires its own test.” To this end, Apple
`has numerous labs and testing facilities designed for these sorts of pre-release tests, including, for
`example, Apple’s Secret Wireless Testing Lab and its Input Design Lab. In the past, Apple has
`widely publicized its rigorous pre-release tests. For instance, Apple claims that in testing its
`iPhone, the device must go through five tests, including a “three-point bending test,” a “pressure-
`point cycling test,” a “torsion test,” a “sit test,” and real-life user studies. Presumably, Apple
`would not have released it’s most powerful MacBook ever without also doing similar pre-release
`testing that would have revealed the Defect. Nonetheless, Apple began the sale of these devices
`without disclosing this knowledge.
`51.
`Second, as discussed above, presumably thousands of users of the M1 MacBook
`have taken their laptops to Apple for repair. Apple’s technicians have either admitted knowledge
`of the Defect or have feigned ignorance. Either way, in some cases Apple did repair numerous of
`these M1 MacBooks and would have had knowledge of how widespread the Defect is from these
`repairs.
`52.
`Third, online reputation management (commonly called “ORM” for short) is now a
`standard business practice among most major companies and entails monitoring consumer forums,
`social media, and other sources on the internet where consumers can review or comment on
`consumer services. “Specifically, [online] reputation management involves the monitoring of the
`reputation of an individual or a brand on the internet, addressing content which is potentially
`damaging to it, and using customer feedback to try to solve problems before the damage to the
`individuals or brand’s reputation.”9 Many companies offer ORM consulting services for
`businesses.
`53.
`Like most companies, Apple presumably cares about its reputation and regularly
`monitors online consumer reviews because they provide valuable data regarding quality control
`
`
`9 Online Reputation, https://websolutions-maine.com/online-reputation/.
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`CLASS ACTION COMPLAINT
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`Case 5:21-cv-07109-SVK Document 1 Filed 09/14/21 Page 17 of 29
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`issues, customer satisfaction, and marking analytics. Reviews like those copied above would be
`particularly attention-grabbing for Apple’s management because extreme reviews are sometimes
`the result of extreme problems and – just like any other company – Apple is presumably sensitive
`to the reputational impact of negative online reviews. Hence, Apple’s management knew or should
`have known about the above-reference consumer complaints shortly after each complaint was
`posted online.
`54.
`These complaints were also memorialized by journalists who have written publicly
`and extensively on this Defect. On August 1, 2021, for example, one journalist, Alan Martin,
`wrote that “Multiple reports have emerged suggesting that both the MacBook Pro M1 and
`MacBook Air M1’s screens could be fragile enough to crack under normal use. Discussion threads
`have popped up on both Reddit and Apple’s own support community, with multiple accounts
`outlining similar cases. After closing their laptops, owners reported reopening them later to be
`greeted by cracks, black lines, and discoloratio