v.
COMPLAINT
APPLE, INC., and AT&T MOBILITY,
LLC, CLASS ACTION
INTRODUCTION
Apple, Inc., and AT&T Mobility, LLC, individually and through any affiliates,
remedies for themselves and the Class (defined below) for the wholesale
promised, to purchasers of the iPhone and users of its version 3.0 or higher
software.
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 2 of 22
THE PARTIES
iPhone 3GS running software version 3.0 on or about June 22, 2009, with the
California.
District of Minnesota.
connection with the sale of 3G iPhones, occurred and had material impact in
Minnesota.
2
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 3 of 22
Minnesota.
purchased from Apple Stores and AT&T Stores. This lawsuit is based in part
12. This Court has jurisdiction pursuant to the Class Action Fairness
an iPhone 3GS since its launch date in June 2009. Plaintiff also asserts
3
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 4 of 22
and millions of putative class members from around the U.S. are citizens of
states other than California, the home state of Apple, or Georgia, the home
28 U.S.C. § 1332(d)(2)(A).
FACTS
13. In January 2007, Apple launched the iPhone. The iPhone was
of an iPod (which stores thousands of music files and plays them back for the
listener) and a cellular phone (which allows users to talk on the telephone
phone portion of the iPhone works exclusively, in the U.S., with the AT&T
cellular phone network. Defendants Apple and AT&T launched the iPhone
as a joint venture. Both AT&T and Apple sold the iPhone in their respective
stores.
14. The original version of the iPhone was called the “2G.” The next
generation, launched in July 2008, was called the “3G.” The most recent
15. Since its creation, one drawback of the original 2G iPhone was
4
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 5 of 22
among other things, allows users to send a picture to another user’s cell
phone.
16. Apple advertised heavily that the new version of iPhone, the 3G,
as well as the even newer version, the 3G-S, would allow MMS. Apple’s print
17. Similarly, AT&T advertised that the 3G and 3G-S would allow
MMS. MMS functionality was one of the reasons people chose to buy or
upgrade to a 3G or 3G-S.
18. MMS has been available on other types of cell phones for many
years.
Send MMS
Take a photo or shoot some video, then send it via Messages. You can
also send audio recordings from within Messages, information from
Contacts, and directions from Maps.
Messages
5
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 6 of 22
Use messages to send text, photos, audio, video, and more. Forward a
whole message or just the important parts.
22. After the 3G iPhone came out in July 2008, customers who
purchased the 3G iPhone began to realize that MMS was not available.
Customers who are sent a MMS message and own a non-MMS capable
device will receive a text message instead of an actual MMS message.
The message will contain the website address of
www.viewmymessage.com/1 or www.viewmymessage.com/2 as well as a
user name and password. To view the MMS message, please access the
website from a computer and enter the user name and password
provided in the text message.
25. The AT&T Answer Center has this unhelpful solution for the
6
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 7 of 22
26. In early 2009, sales representatives for both Apple and AT&T
represented that MMS would be available on both the 3G and the 3G-S
beginning on June 17, 2009, when the new iPhone OS 3.0 Software Update
customers that with this new application, which could be downloaded for free,
27. In the spring of 2009, AT&T began a huge sales drive to sell its
older 3G models in preparation for the launch of 3G-S. AT&T lowered the
price of a 3G to less than $100 and assured customers that the new 3.0
Update” page, that MMS would be available, so that customers could “send
MMS messages and include photos, audio, and contact info. Even tap to snap
a picture right inside Messages.” A graphic showed the familiar iPhone test
3G-S, waiting for June 2009, when the new application would be available
7
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 8 of 22
application or having had it done for them by AT&T, users found that MMS
following:
1. Verify that your iPhone and wireless carrier meet the system
-- A coverage area in which you can place and receive a call, and
coverage recommended).
2. If this article shows that your carrier supports MMS, you should see
below.
North America, and viewing the graph for USA, under the heading “AT&T” it
8
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 9 of 22
shows that AT&T is NOT a carrier which offers MMS. Of course, AT&T is
33. In other words, AT&T’s towers do not support MMS for iPhone.
admitted that AT&T does not support MMS for the iPhone.
34. Calling Apple Customer Support reveals that AT&T has never
36. None of the materials in either the Apple or AT&T stores advise
consumers that the MMS functionality of the phones will only work after the
purchasers will get what they should have in terms of MMS capability. In
the meantime, all the millions of purchasers of the 3G and the 3G-S iPhone
have been deceived by the Defendants as to the phone, which in fact does not
9
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 10 of 22
Plaintiff’s Experience
bought his iPhone on June 22, 2009 at the AT&T Store located in Apple
Valley, Minnesota.
MMS.
downloaded it.
46. Between July 2009 and September 2009, Irving called Apple
inquiring about the MMS and its availability. Irving was told that AT&T had
not upgraded its towers and may not do so until some time in the late
summer of 2009.
10
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 11 of 22
47. Irving has been damaged in that for many months he has been
CLASS ALLEGATIONS
48. Plaintiff sues in his own behalf and on behalf of a class of persons
under Rules 23(a), (b)(2), (b)(3), and (c)(4) of the Federal Rules of Civil
connection with the proceedings to certify this action and its common
All persons in the United States who, between July 2008 and the
date of final judgment or settlement, have purchased a 3G or 3G-
S iPhone from either AT&T Mobility L.L.C. or Apple, Inc., for
personal, family, or household use.
51. Numerosity: Plaintiff does not know the exact size of the
proposed Class and Subclass, or the identities of all their members because
11
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 12 of 22
the millions of iPhones sold, combined with the fact that the terms and
been subjected to and affected by the same conduct. There are questions of
law and fact that are common to the Class, and predominate over any
functionality;
MMS functionality;
MMS functionality;
unavailability of MMS;
deceptive conduct;
12
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 13 of 22
for;
towers to support MMS for iPhone, and, if so, when did they gain
this knowledge;
had not upgraded its towers to support MMS for iPhone and had
Upgrade would not fix the problem and make MMS available (by
itself);
fact that AT&T towers do not support MMS for iPhone, or any
13
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 14 of 22
was;
53. Typicality: The claims of the named Plaintiff are typical of the
claims of the Class and do not conflict with the interests of other members of
the Class in that Plaintiff suffered damages as a result of paying for a phone
that did not function as promised and paying for services not rendered.
proposed class.
prosecution of the Class’s claims and has retained attorneys who are
14
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 15 of 22
Neither Plaintiff nor counsel have any interest adverse to those of Class
members.
the issues in this case does not create any problems of manageability. Among
other things, class action treatment will permit a large number of similarly
providing injured persons or entities with a method for obtaining redress for
outweigh any difficulties that may arise in management of this class action.
case against opposition from the Defendants when the potential for recovery
is so small for each class member. Therefore, joinder of all similarly situated
plaintiffs is not appropriate and the Court should employ the class
15
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 16 of 22
class as a whole.
COUNT I
Breach of Contract
58. Plaintiff incorporates by reference the allegations contained in
16
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 17 of 22
both fall within the meaning of “merchandise” under Minn. Stat. § 325F.68,
subd. 2.
65. On or about June 22, 2009, Plaintiff went to the ATT Store in
sale, the representative of Defendant ATT told Plaintiff that the iPhone
website and at their stores that MMS worked with iPhone. On their websites
were blatantly false and Defendants omitted the material fact that AT&T
conduct, Plaintiffs and class members sustained damages and are also
17
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 18 of 22
in this case were material because Defendants’ marketing materials (and the
COUNT VI
Violations of the Minnesota Unlawful Trade Practices Act,
Minn. Stat. § 325D.13
18
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 19 of 22
§ 325D.13, Plaintiffs and class members sustained damages, and are also
COUNT VII
Violations of the Minnesota Uniform Deceptive Trade Practices Act,
Minn. Stat. § 325D.44
19
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 20 of 22
and omission) the true quality and nature of their iPhone and messaging
Stat. § 325D.44, Plaintiffs and class members are entitled damages, and an
knowing them to be deceptive, Plaintiffs and the proposed Class are entitled
to recover their costs and attorneys’ fees under Minn. Stat. § 325D.45,
subd. 2.
e. An accounting;
20
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 21 of 22
f. Pursuant to Minn. Stat. § 8.31, subd. 3a, and the Court’s inherent
equitable power, an order requiring Defendants to pay reasonable
attorneys’ fees, costs and disbursements;
h. All other relief the Court deems just and proper under the
circumstances of this case.
Timothy A. Engelmeyer
(MO Bar No. 39941)
Anthony M. Pezzani (MO Bar No. 52900)
ENGELMEYER & PEZZANI, LLC
13321 N. Outer Forty Road, Suite 300
Chesterfield, MO 63017
Telephone: (636) 532-9933
Facsimile: (314) 863-7793
21
Case 0:09-cv-02613-PAM-FLN Document 1 Filed 09/24/09 Page 22 of 22
Ronnie G. Penton
LAW OFFICES OF RONNIE G.
PENTON
208 Hoppen Place
Bogalusa, LA 70427
Telephone: (985) 732-5680
Facsimile: (985) 732-5579
22