Kurtzman Carson Consultants announced Monday afternoon that a settlement has been reached in the class action suit of Johnson v. Apple Inc. The suit involved iTunes customers who purchased songs from the iTunes Music Store for $1.29 using gift cards whose labels or packaging contained language promising songs for $0.99.
Starting April 1, 2009, Apple introduced a three-tier pricing structure for the iTunes Music Store, continuing to sell some tracks at the traditional price of $0.99 while also introducing a $0.69 price point for catalogue tracks and a $1.29 price point for new or popular tracks. Prices are determined by the publishers.
During the transition to this new pricing model, Apple continued to sell iTunes Gift Cards that advertised $0.99 songs on their packaging. This caused plaintiff Gabriel Johnson to file suit in July 2009, a suit that then became a class action.
The suit has been settled out of court, and eligible class members are set to receive $3.25 in iTunes Store credit. As is typical of class action suits, attorneys fees dwarf the class award to individuals and have been set at $2,117,500.
If you are eligible for the settlement you can find instructions on filing a claim at Kurtzman Carson Consultants website.