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Woman sues iPhone trio over price cuts – Steve Jobs, Apple, AT&T all named in latest lawsuit

September 29, 2007 by Will Park - 4 Comments

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Apple Steve Jobs AT&T sued over iPhone price cutAnd they just keep coming in. The latest iPhone-related lawsuit is aimed not only at the iPhone maker, but at the exclusive iPhone carrier (AT&T), as well as Mr. Steve Jobs himself. The suit was filed on September 24 in the United States District Court for the Eastern District of New York, Queens. The plaintiff, Dongmei Li, alleges that the iPhone “trio” is guilty of price discrimination, underselling, discrimination in rebates, and deceptive actions in the recent iPhone price cuts that left early iPhone adopters feeling the pain of the $200 hit.

What motivated Li to pursue legal action? Well, first she waited in the launch-day line for the iPhone. Then she found that the store only had 4GB iPhones in stock, so she bought one – which isn’t exactly a horrible story. But then Apple slashed the price of the 8GB iPhone and discontinued the 4GB model – leaving Li with an unsellable, discontinued iPhone model.

The complaint mentions that discrimination comes into play because Li was only offered the $100 store credit while those that had purchased their iPhones two-weeks prior to the price cut were refunded $200 in cash. Furthermore, historical analysis of Apple’s stock price (which Li provided in the 8-page complaint) outlined Apple’s incredible stock-market gains in the time period preceding the price cut. Apple had no financial reason to cut prices, and Li reasoned that the price drop amounted to nothing more than “underselling.”

If Ms. Li is to win her $1 million (in compensatory damages) case against Apple, Steve Jobs, and AT&T, she definitely won’t have to worry about buying another 8GB iPhone (or a dozen) at the new price. This lawsuit seems to be the most legit case that anyone has filed against Apple. We’re not sure if “underselling” is a prosecutable offense, but Li and her attorney sure do make a good case. It’s too bad she didn’t opt to go the class-action lawsuit-route – so that we could all benefit, should she win.

[Via: Apple Insider]

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