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Preliminary Approval of Settlement in Cameron v. Apple
Preliminary Approval of Settlement in Cameron v. Apple
10 On November 2, 2021, the Court held a hearing on the unopposed motion of plaintiffs
11 Donald Cameron and Pure Sweat Basketball, Inc. for preliminary approval of the parties’
12 proposed settlement; approval of the proposed Class Notice; appointing Class Representative,
Northern District of California
United States District Court
13 Class Counsel and the proposed Settlement Administrator; and setting a date for the hearing on
14 final approval of the settlement. (Dkt. No. 396.) Steve Berman, Rob Lopez, and Ben Harrington
15 of Hagens Berman Sobol Shapiro LLP appeared for plaintiffs, and Mark Perry, Rachel Brass, and
16 Caeli Higney of Gibson, Dunn, & Crutcher LLP appeared for defendant Apple, Inc.
17 Having considered the motion briefing, the arguments of counsel, the relevant law, the
18 terms of the settlement agreement and the class notice, as well as the record in this case, and based
19 on the reasons and terms set forth herein, the Court GRANTS the motion for preliminary approval
22 The Settlement Agreement, attached hereto as Exhibit A, defines the class as:
13
F.3d 1011, 1026 (9th Cir. 1998). Plaintiffs brought the following causes of action: (i) Violation of
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the Sherman Act –Monopolization/ Monopsonization (15 U.S.C. § 2); (ii) Violation of the
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Sherman Act-Attempted Monopolization/ Monopsonization (15 U.S.C. § 2); (iii) Unlawful
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business practices and violations under California Business and Professions Code, § 17200, et seq.
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(“UCL”); and (iv) Unfair competition under California Business and Professions Code, § 17200,
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et seq. (“UCL”). (See Dkt. No. 53) (“Consolidated Class Complaint”). The focus of this action—
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whether Apple willfully acquired and maintained monopoly power, or attempted to gain monopoly
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power, by refusing to allow iOS device users to purchase iOS apps and in-app products other than
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through its own App Store—is common to all class members. Antitrust actions are particularly
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appropriate for class treatment as the allegations regarding the defendant’s conduct, and the
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evidence of the same, which typically is expert heavy, impacts the class generally.
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Rule 23(a)(3) requires that the plaintiffs show that the claims or defenses of the
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representative parties are typical of the claims or defenses of the class. Plaintiffs’ and members of
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the Settlement Class claims all stem from the same alleged conduct, i.e. antitrust injury, making
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plaintiffs’ claims typical of class members. Here, while the settlement class is narrower than that
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1 alleged in the consolidated complaint, the class representatives themselves are typical of those
3 With respect to Rule 23(a)(4), the Court finds the representative parties and class counsel
4 have fairly and adequately represented the interests of the Class. No conflicts of interest appear as
5 between plaintiffs and the members of the Settlement Class. Class Counsel are deeply versed in
6 this area of the law and have routinely demonstrated that they are qualified and have experience
7 with prosecuting class actions of this kind and therefore adequate to represent the Settlement Class
8 as well. The parties engaged in extensive discovery during the almost 2.5-year course of this
9 litigation. More than 5 million documents and 20 million pages have been produced in this
10 litigation. Berman Decl. ¶ 3. The parties collectively have taken over fifty depositions, including
11 the depositions of Apple’s Senior Management. See Id. Apple has produced 13 terabytes of
12 transactional data that plaintiffs and their experts have analyzed. Id.
Northern District of California
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13 The Settlement Class further satisfies Rule 23(b)(3) in that common issues predominate
14 and “a class action is superior to other available methods for fairly and efficiently adjudicating”
16 Based on the foregoing, the proposed class is conditionally certified pursuant to Rule
17 23(c).
19 Plaintiffs Donald Cameron and Pure Sweat Basketball, Inc., are appointed the Class
21 Class counsel are experts in antitrust litigation and argue that they have aggressively
22 pursued and analyzed a massive discovery record, have conducted and/or defended at least
23 seventeen depositions, retained prominent experts, and prepared a motion for class certification.
24 (Berman Decl. ¶ 3.) With respect to the named plaintiffs, they have actively furthered the interests
25 of the class by reviewing submissions, conferring with class counsel, producing documents, and
26 sitting for depositions. Named plaintiffs appear to have no conflict of interest with the settlement
27 class and have suffered the same alleged injury as all settlement class members. (Mot. at 11, 24.)
28 3. Settlement Agreement
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1 In summary, the settlement provides $100,000,000 in monetary relief and structural relief
2 in 6 areas of particular concern to the IOS developer community. (See Settlement Agreement). The
3 Settlement Agreement appears to have been the product of arm’s length and informed negotiations
4 with the assistance of an experienced mediator. The relief provided for the Class appears to be
6 (i) the costs and risks associated with trial and appeal;
7 (ii) the effectiveness of any proposed method of distributing relief to the class, including
9 (iii) the terms of any proposed award of attorney’s fees, including timing of payment; and
10 (iv) any agreements required to be identified under Rule 23(e)(3) (in this case, none).
11 Moreover, the Settlement Agreement appears to treat Class members equitably relative to
12 each other. The Court notes that it is particularly aware of the risks of trial in this case having
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United States District Court
13 tried and written a 185-page decision in the Epic Games v. Apple dispute referenced above.
14 Preliminary approval will allow the Court to hear any objections by the proposed class members
16 In terms of structural relief, under the Settlement, Apple has agreed to maintain the 15-
17 percent commission tier for U.S. developers enrolled in the Small Business Program for at least
18 three years after Final Approval. See id. § 5.1.1. Next, Apple has agreed to revise its App Store
19 Guidelines to permit developers of all app categories to communicate with consenting customers
20 outside their app, including via email and other communication services, about purchasing
21 methods other than in-app purchase. See id. § 5.1.3. Third, for at least three years after Final
23 improvement” in App discoverability, including in ways that will “give new and high-quality apps
24 a chance to be found.” See id. § 5.1.2. Fourth, Apple will expand its pricing tiers from 100 to 500
25 (by December 31, 2022), and maintain those tiers for at least three years from Final Approval. See
26 id. § 5.1.4. This enhanced pricing freedom will allow iOS developers to more carefully calibrate
27 their prices to compete and enhance revenues. Fifth, Apple will create an appeal process, which
28 will be available to any developer who “believes that there has been unfair treatment by Apple in
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1 the review of any of the U.S. developer’s apps, or in-app products, or updates.” See id. 5.1.5.
2 Apple will be required under the Settlement to maintain this appeal process, and the website
3 callout, for at least three years. See id. Finally, in terms of transparency, for at least three years
4 from Final Approval, Apple will publish an annual “transparency report” that (at a minimum) will
5 provide (a) meaningful statistics on the number of apps rejected and reasons why, (b) the number
6 of customer and developer accounts deactivated, and (c) objective data regarding search queries
7 and results, and the number of apps removed from the App Store. See id. § 5.1.6. The Court finds
10 23(e)(2). Based upon the information before the Court, the Settlement Agreement falls within the
11 range of possible approval as fair, adequate and reasonable, and there is a sufficient basis for
12 notifying the Class and for setting a Fairness and Final Approval Hearing.
Northern District of California
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13 4. Plan of Allocation
14 The allocation plan provides a minimum payment to every member of the settlement class,
15 with higher payments available to those who have participated more extensively in the iOS app
16 ecosystem. Each class member’s recovery will be tied to the historic proceeds they have generated
17 through the App store. Given that settlement class members’ proceeds in the app store can be
18 influenced by discoverability issues outside their control, plaintiffs believe that an equitable means
19 of allocating the settlement fund is to group settlement class members into tiers, which the
20 settlement does. In its initial analysis, the Court finds that this appears to be a fair method of
21 distribution.
5 The Court preliminarily approves the proposed plan of allocation set forth in the Motion and the
6 Class Notice. Class members will receive a settlement share unless they submit a valid and timely
8 5. Notice Plan
9 The parties’ proposed notice plan appears to be constitutionally sound in that plaintiffs
10 have made a sufficient showing that it is: (i) the best notice practicable; (ii) reasonably calculated,
11 under the circumstances, to apprise the Class members of the proposed settlement and of their
12 right to object or to exclude themselves as provided in the settlement agreement; (iii) reasonable
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13 and constitute due, adequate, and sufficient notice to all persons entitled to receive notice; and (iv)
14 meet all applicable requirements of due process and any other applicable requirements under
15 federal law.
16 The Court approves the revised form of the proposed Class Notice attached as Exhibit B to
17 this Order. Taken together these notices are sufficient to inform Class members of the terms of the
18 Settlement Agreement, their rights under the Settlement Agreement, their rights to object to or
19 comment on the Settlement Agreement, their right to receive a payment or opt out of the
20 Settlement Agreement, the process for doing so, and the date and location of the Fairness and
22 6. Settlement Administrator
23 Angeion Group is appointed to act as the Settlement Administrator, pursuant to the terms
25 The Settlement Administrator shall distribute the Class Notice according to the notice plan
26 described in the Settlement Agreement and substantially in the form approved herein, no later than
27 JANUARY 14, 2022 (“Notice Date”). Proof of distribution of the Class Notice shall be filed by the
2 contact data as specified by the Settlement Agreement no later than DECEMBER 3, 2021.
3 7. Exclusion/Opt-Out
4 Any Class Member shall have the right to be excluded from the Class by mailing a request
5 for exclusion to the Settlement Administrator no later than MARCH 21, 2022. Requests for
6 exclusion must be in writing and must set forth the name and address of the person who wishes to
7 be excluded, and must be signed by the class member seeking exclusion. No later than APRIL 29,
8 2022, Class Counsel shall file with the Court a list of all persons or entities who have timely
10 Any Class Member who does not request exclusion from the settlement class as provided
11 above shall be bound by the terms and provisions of the Settlement Agreement upon its final
12 approval, including but not limited to the releases, waivers, and covenants described in the
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13 Settlement Agreement, whether or not such person or entity objected to the Settlement Agreement
14 and whether or not such person or entity makes a claim upon the settlement funds.
15 8. Objections
16 Any Class Member who has not submitted a timely request for exclusion from the
17 Settlement Agreement shall have the right to object to (1) the Settlement Agreement, (2) the plan
18 of allocation; and/or Class Counsel’s motion for attorneys’ fees and Class Representative Awards
19 by mailing to the Settlement Administrator a written objection and stating whether they intend to
20 appear at the Fairness Hearing, as set forth in the Class Notice, no later than MARCH 21, 2022.
21 Failure to submit a timely written objection will preclude consideration of the Class Member’s
24 Plaintiffs and their counsel shall file their motion for attorneys’ fees and for Class
25 Representative awards no later than FEBRUARY 14, 2022. Counsel is reminded that the Court does
26 not typically award thirty-three percent (33%) of the gross settlement fund as fees and that any
27 request for the same will need to be accompanied by detailed time records. Each settlement class
28 member shall have the right to object to the motion for attorneys’ fees and Class Representative
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1 awards by filing a written objection with the Court no later than MARCH 21, 2022, as stated in
2 paragraph 8 above.
3 Plaintiffs shall file a reply brief responding to any timely objection no later than APRIL 29,
4 2022.
6 All briefs, memoranda and papers in support of final approval of the settlement shall be
8 The Court will conduct a Fairness and Final Approval Hearing on JUNE 7, 2022 AT 2:00
9 PM, to determine whether the Settlement Agreement should be granted final approval as fair,
10 reasonable, and adequate as to the Class. The Court will hear all evidence and argument necessary
11 to evaluate the Settlement Agreement and will consider Class Counsel’s motion for attorneys’ fees
13 Class members may appear, by counsel or on their own behalf, to be heard in support of or
14 opposition to the Settlement Agreement and Class Counsel’s Motion for attorneys’ fees and Class
15 Representative awards by filing a Notice of Intention to Appear no later than MAY 6, 2022.
16 The Court reserves the right to continue the date of the final approval hearing without
18 The Court retains jurisdiction to consider all further applications arising out of or in
8 IS SO ORDERED.
9 This terminates Docket No. 396.
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Dated: 11/16/2021
11 YVONNE GONZALEZ ROGERS
UNITED STATES DISTRICT COURT JUDGE
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United States District Court
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EXHIBIT A
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OAKLAND DIVISION
v.
Defendant.
The Parties, by and through their respective counsel, in consideration for and subject to the
promises, terms, and conditions contained in this Settlement Agreement, hereby warrant,
represent, acknowledge, covenant, stipulate and agree, subject to Court approval pursuant to Rule
1. DEFINITIONS
As used herein the following terms have the meanings set for below:
1.1 “Action” shall mean the litigation styled Donald R. Cameron, Pure Sweat
Basketball, Inc., and Barry Sermons, on behalf of themselves and all others similarly situated v.
Apple Inc., Case No. 4:19-cv-03074-YGR, filed in the United States District Court for the
1.3 “Approved Claims” means those Claims which are approved by the Settlement
1.4 “Associated Developer Accounts” means any U.S. Apple Developer Program
account that an individual or legal entity owns or controls, or any U.S. Apple Developer Program
1.5 “Attorneys’ Fees” means any award of attorneys’ fees, costs, and expenses of any
kind or description incurred by Class Counsel or other attorneys, experts, consultants, or agents of
1.6 “Claim Form” means the proof of claim and release form(s) in a form mutually
agreeable to the parties, to be attached as an exhibit to the Motion for Preliminary Approval.
1.8 “Claims Period” means the period between the Notice Date until the deadline set
1.9 “Class Counsel” means the law firm of Hagens Berman Sobol Shapiro LLP, who
has any and all authority and capacity necessary to execute this Settlement Agreement and bind
all of the Named Plaintiffs who have not personally signed this Settlement Agreement, as if each
1.10 “Class Notice” means the Notice of Pendency and Proposed Settlement of Class
Action in a form mutually agreeable to the parties, to be attached as an exhibit to the Motion for
Preliminary Approval.
1.11 “Court” means the United States District Court for the Northern District of
California.
1.12 “Defense Counsel” means the law firm of Gibson, Dunn & Crutcher LLP.
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1.13 “Developer” means a person or entity who has registered for a Developer Program
Account with Apple, and shall include all Associated Developer Accounts. A “U.S. Developer”
means a Developer who self-identified as U.S.-based when registering for the Developer Program.
1.14 “Effective Date” shall mean the first day after which all of the following events and
(a) Apple, Class Counsel, and Defense Counsel have executed this Settlement
Agreement;
(b) The Court has conditionally certified the Settlement Class, preliminarily
(c) The time period for members of the Settlement Class to exclude
(f) The Court has entered the Final Approval Order and Final Judgment;
(g) The time for appeal or writ of the Final Approval Order and Final
Judgment has expired or, if an appeal and/or petition for review is taken
and the Settlement is affirmed, the time period during which further
petition for hearing, appeal, or writ of certiorari can be taken has expired;
(h) The time for appeal or writ of any order regarding Attorneys’ Fees and
appeal and/or petition for review is taken and the order is affirmed, the
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time period during which further petition for hearing, appeal, or writ of
(i) The Action is dismissed with prejudice and a final judgment is entered;
and
(j) The time for appeal or writ of the final judgment in the Action has expired
or, if an appeal and/or petition for review is taken and the dismissal is
affirmed, the time period during which further petition for hearing, appeal,
1.15 “Final Approval Order and Final Judgment” means the final approval order and
1.16 “Final Hearing” means the hearing(s) held by the Court to consider and determine
whether the requirements for certification of the Settlement Class have been met and whether the
Settlement should be approved as fair, reasonable, and adequate; whether Class Counsel’s
Attorneys’ Fees should be approved; and whether the Final Approval Order and Final Judgment
should be entered. The Final Hearing may, from time to time and without further notice to the
Settlement Class (except those who have filed timely and valid objections and requested to speak
1.17 “Named Plaintiffs” means Donald R. Cameron and Pure Sweat Basketball, Inc.
1.18 “Net Small Developer Assistance Fund” means the Small Developer Assistance
Fund, reduced by the sum of the following amounts: (1) the costs of notice and the costs of
administering the Settlement, as set forth in Sections 7.1 and 7.2 below; (2) any Attorneys’ Fees
(which may include separate awards for fees and expenses) to Class Counsel, as set forth in
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Sections 9.1 and 9.2 below; and (3) any Service Awards provided to Named Plaintiffs with the
1.19 “Notice Date” means the date set forth in the Preliminary Approval Order for
1.21 “Proceeds” means a Developer’s net revenues on the U.S. App Store storefront,
Settlement, providing for notice to the Settlement Class, and preliminarily approving a proposed
1.23 “Released Parties” means (a) Apple and its past, present, and future parents,
subsidiaries, affiliates, divisions, joint ventures, licensees, franchisees, and any other legal entities,
whether foreign or domestic, that are owned or controlled by Apple; and (b) the past, present, and
1.24 “Service Award” means a payment from the Small Developer Assistance Fund to
either or both of the two Named Plaintiffs, in an amount not to exceed $5,000.00, in recognition
of their service in prosecuting this action as developer businesses, exclusive of any other payments
to which they might be entitled under this Agreement, if approved by the Court.
1.25 “Settlement” and “Settlement Agreement” mean the settlement described in this
Stipulation of Settlement.
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1.26 “Settlement Administrator” means Angeion Group, which shall provide settlement
notice and administration services pursuant to the terms of this Settlement Agreement.
1.27 “Settlement Class” means all former or current U.S. Developers of any Apple iOS
application or in-app product (including subscriptions) sold for a non-zero price via Apple’s iOS
App Store that earned, through all Associated Developer Accounts, Proceeds equal to or less than
$1,000,000.00 through the App Store U.S. storefront in every calendar year in which the U.S.
Developer had a Developer Account between June 4, 2015 to the date of this Agreement. For class
definition purposes, the 2015 calendar year shall consist of June 4, 2015 through December 31,
2015. The 2021 calendar year shall consist of January 1, 2021 through April 26, 2021, the last
date in 2021 for which there are available developer transactional data as produced in this Action.
Additionally, excluded from the Settlement Class are (a) directors, officers, and employees of
Apple or its subsidiaries and affiliated companies, as well as Apple’s legal representatives, heirs,
successors, or assigns, (b) the Court, the Court staff, as well as any appellate court to which this
matter is ever assigned and its staff, (c) Defense Counsel, as well as their immediate family
members, legal representatives, heirs, successors, or assigns, (d) any Developers who validly
request exclusion (“opt out”) from the Settlement Class, and (e) any other individuals whose
1.28 “Settlement Class Member” means and includes every member of the Settlement
Class who does not validly and timely request exclusion (“opt out”) from the Settlement Class.
1.29 “Small Developer Assistance Fund” means a non-reversionary cash fund total of
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1.30 “Settlement Website” means an Internet website that the Settlement Administrator
shall establish to inform the Settlement Class of the terms of this Settlement, their rights, dates,
1.31 “Summary Notice” means the Summary Notice of Settlement in a form mutually
agreeable to the parties, to be attached as an exhibit to the Motion for Preliminary Approval.
2. RECITALS
This Agreement is made for the following purposes and with reference to the following
facts:
2.1 On June 4, 2019, plaintiffs Donald Cameron and Pure Sweat Basketball, Inc. filed
the first complaint in the Action in the United State District Court for the Northern District of
California. On September 30, 2019, Named Plaintiffs filed a Consolidated Amended Complaint.
The Consolidated Amended Complaint alleged that Apple had monopolized an alleged iOS app
and in-app-product distribution services market in violation of Section 2 of the Sherman Act; that
Apple had attempted to monopolize an alleged iOS app and in-app-product distribution services
market in violation of Section 2 of the Sherman Act; and that Apple’s conduct violated Section
2.2 The Parties engaged in extensive discovery in the Action, which was consolidated
with Epic v. Apple Inc., Case No. 4:20-CV-05640-YGR, and In re Apple iPhone Antitrust
Litigation, Case No. 4:11-cv-06714-YGR, for purposes of discovery. Apple produced more than
2.3 On January 1, 2021, Apple introduced the App Store Small Business Program
(“SBP”). The structure and timing of the SBP was driven by Apple’s desire to accelerate
innovation and help propel small businesses forward with the next generation of groundbreaking
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apps on the App Store, in light of the Coronavirus pandemic. Apple also acknowledges that the
pendency of this lawsuit was a factor in its decision to adopt the SBP. Under the Small Business
Program:
• Existing developers who made up to $1,000,000.00 in proceeds in 2020 for all their
apps, as well as developers new to the App Store, can qualify for the program and
a reduced commission rate of fifteen percent (15%) on paid apps and in-app
purchases.
calendar year, they can requalify for the fifteen percent (15%) commission the year
after.
proceeds eligibility.
2.4 On June 1, 2021, Named Plaintiffs filed a motion for class certification in the
Action, seeking certification of a class of all U.S. developers of any Apple iOS application or in-
app product (including subscriptions) sold for a non-zero price via Apple’s iOS App Store at any
time on or after June 4, 2015. On August 10, 2021, Apple filed its opposition to Plaintiffs’ motion
for class certification, along with a motion to exclude Plaintiffs’ experts and a motion to compel a
trial plan.
2.5 The Parties engaged in extensive, arm’s-length negotiations over the course of the
Action, with the assistance of the Hon. Layn R. Phillips (Ret.) of Phillips ADR, a former United
States District Court Judge and one of the most experienced mediators in the United States. As a
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result of these arm’s-length negotiations, the Parties reached the Settlement set forth in this
Settlement Agreement, which memorializes the Parties’ agreement. The Parties intend that this
Settlement completely resolve any and all claims that were, or could have been, asserted in the
2.6 Apple vigorously disputes the claims alleged in the Action and is entering into this
Settlement to avoid burdensome and costly litigation. The Settlement is not an admission of
wrongdoing, fault, liability, or damage of any kind. Among other things, Apple disputes that
Named Plaintiffs’ claims have merit, that Named Plaintiffs will be able to certify any class in this
Action for litigation purposes, and that Named Plaintiffs and the putative class would be entitled
to any relief. Without admitting any of the allegations made in the Action or any liability
whatsoever, Apple is willing to enter into this Settlement solely in order to eliminate the burdens,
distractions, expense and uncertainty of protracted litigation and in order to obtain the releases and
final judgment contemplated by this Settlement, and to provide additional assistance to the small
2.7 Class Counsel and the Named Plaintiffs believe that the claims asserted in the
Action have merit and have examined and considered the benefits to be obtained under this
Settlement, the risks associated with the continued prosecution of this complex and potentially
time-consuming litigation, and the likelihood of ultimate success on the merits, and have
concluded that the Settlement is fair, adequate, reasonable and in the best interests of the
Settlement Class.
2.8 The Parties desire to settle the Action in its entirety with respect to all potential
claims arising out of the same facts alleged in the complaints filed in the Action. The Parties
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intend this Settlement Agreement to bind Apple, the Named Plaintiffs, and all other Settlement
Class Members.
3. CONFIDENTIALITY
3.1 The Parties must comply with all portions of the Stipulated Protective Order (Dkt.
252) (as well as all Supplemental Protective Orders entered in the Action), including but not
limited to Section 14 of the Stipulated Protective Order, which requires the return, destruction, or
deletion of Protected Material (as defined in the Protective Order) within sixty (60) days of the
3.2 This Settlement Agreement and its terms, including the fact of the proposed
Settlement, shall remain completely confidential until all documents are executed and the Motion
for Preliminary Approval is filed with the Court. Pending the filing of that Motion, Class Counsel
may disclose this Settlement Agreement and its terms to their respective clients and experts as
necessary for the implementation of this Settlement Agreement, who will also maintain the
complete confidentiality of this Settlement Agreement and its terms, including the fact of the
proposed Settlement.
4.1 The Parties stipulate and agree that, subject to Court approval, the Settlement Class
should be conditionally certified pursuant to Rule 23(b)(3) of the Federal Rules of Civil Procedure
solely for purposes of the Settlement embodied in this Settlement Agreement. If, for any reason,
this Settlement Agreement is not approved by the Court, the stipulation for certification and all of
the agreements contained herein shall be considered null and void as provided in Section 8.5.
4.2 Apple does not consent to certification of the Settlement Class (or to the propriety
of class treatment) for any purpose other than to effectuate this Settlement. For the avoidance of
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doubt, Apple does not agree that this (or any) class of Developers could be certified for litigation
purposes or that a trial of these claims would be manageable. Apple’s agreement to provisional
certification for purposes of settlement does not constitute an admission of wrongdoing, fault,
liability, or damage of any kind, or that any class certification would be appropriate for litigation
4.3 If for any reason the Effective Date does not occur or this Settlement Agreement is
terminated, disapproved by any court (including any appellate court), or not consummated for any
reason, the order certifying the Settlement Class for purposes of effectuating the Settlement (and
all preliminary and final findings regarding that class certification order) shall be automatically
vacated upon notice of the same to the Court. The Action shall then proceed as though the
Settlement Class had never been certified pursuant to this Settlement Agreement and such findings
had never been made, and the Action shall return to their procedural postures on the date this
Settlement Agreement was signed. Additionally, the Parties and their counsel shall not contend
that certification (or agreement to certification) of the Settlement Class supports certification of
any litigation class if this Settlement Agreement is not consummated and the Action is later
litigated and certification is contested by Apple under Rule 23 or any equivalent statute or rule.
5. SETTLEMENT CONSIDERATION
5.1 Structural Relief. In consideration of the releases and dismissals set forth in this
Settlement Agreement, subject to Court approval, and subject to the other terms and conditions of
this Settlement Agreement, Apple agrees that for a period of at least three (3) years following the
5.1.1 Maintain a commission rate of no greater than fifteen percent (15%) for U.S.
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pursuant to the terms and conditions of the Small Business Program and subject
relevance, and user behavior signals. Apple may also continue to include apps
as well as to give new and high-quality apps a chance to be found. Apple will
improvement.
5.1.3 Permit all U.S. Developers to communicate with their customers via email and
other communication services outside their app about purchasing methods other
communication and has the right to opt out. In-app communications, including
via Apple Push Notification service, are outside the scope of this provision.
Apple will revise its App Store Guidelines to permit the foregoing for all app
“Developers cannot use information obtained within the app to target individual
users outside of the app to use purchasing methods other than in-app purchase (such
as sending an individual user an email about other purchasing methods after that
5.1.4 Expand the choice of price points for subscriptions, in-app purchases, and paid
apps from fewer than 100 to more than 500 (by December 31, 2022).
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5.1.5 Maintain the option for U.S. Developers to appeal the rejection of an app based
on unfair treatment and add online content to the app review portion of Apple’s
note that a developer can appeal the rejection of an app when the developer
believes that there has been unfair treatment by Apple in the review of any of
meaningful statistics such as the number of apps rejected for different reasons,
regarding search queries and results, and the number of apps removed from the
App Store.
5.2 Covenant Not to Sue. The members of the Settlement Class expressly agree to the
appropriateness of Apple’s commission structure, including but not limited to the Small Business
Program, as it applies to the Settlement Class. In light of the structural and monetary relief
afforded by Apple pursuant to this Settlement Agreement, the members of the Settlement Class
covenant not to sue Apple on any claim that was or could have been asserted in the Action.
Settlement Class Members to the app economy, particularly as the economy continues to suffer
the effects of the Coronavirus pandemic, and in further consideration of the releases and dismissals
set forth in this Settlement Agreement, subject to Court approval, and subject to the other terms
and conditions of this Settlement Agreement, Apple shall establish a Small Developer Assistance
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5.3.1 Within thirty (30) days after an Order granting Preliminary Approval, Apple
thirty (30) days after the Effective Date, Apple shall transfer $98,000,000.00
5.3.2 The Settlement Administrator shall agree to hold the Small Developer
and from the earliest possible date, as a qualified settlement fund as defined in
Fund.
6.1.1 to pay the costs of notice and the costs of administering the Settlement, as set
6.1.2 to pay any approved Attorneys’ Fees to Class Counsel as set forth in Section 9
below;
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6.1.4 to distribute the Net Small Developer Assistance Fund to Settlement Class
6.2 The Small Developer Assistance Fund will be distributed to all Settlement Class
Members who have Approved Claims, with each such U.S. Developer entitled to a
minimum payment of $250.00 from the Net Small Developer Assistance Fund. U.S.
Developers may qualify for a higher payment based on their historic participation in
the App Store ecosystem. For all Approved Claims, the following amounts will be
6.2.1 A Settlement Class Member who earned Proceeds of no more than $100.00
payment of $250.00.
6.2.2 A Settlement Class Member who earned Proceeds of between $100.01 and
6.2.3 A Settlement Class Member who earned Proceeds of between $1,000.01 and
6.2.4 A Settlement Class Member who earned Proceeds of between $5,000.01 and
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6.2.5 A Settlement Class Member who earned Proceeds of between $10,000.01 and
6.2.6 A Settlement Class Member who earned Proceeds of between $50,000.01 and
6.2.7 A Settlement Class Member who earned Proceeds of between $100,000.01 and
6.2.8 A Settlement Class Member who earned Proceeds of between $250,000.01 and
6.2.9 A Settlement Class Member who earned Proceeds of between $500,000.01 and
6.2.10 A Settlement Class Member who earned Proceeds of over $1,000,000.01 from
$30,000.00.
6.3 The minimum payment amounts set forth in Section 6.2 above assume that one
not all Settlement Class Members have an Approved Claim, then the minimum
payment amounts to Settlement Class Members with Approved Claims shall increase
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6.4 The minimum payment amounts set forth in Section 6.2 above assume that the Net
Small Developer Assistance Fund is approximately $68 million. The actual amount
could be greater or less depending on the costs of administration, any Service Awards,
and the amounts awarded by the Court for attorneys’ fees and expenses pursuant to
Section 9.1.
6.5 Within sixty (60) days after receiving the Small Developer Assistance Funds pursuant
to Section 5.3, the Settlement Administrator shall have substantially completed the
issuance of the initial payments to the Settlement Class Members with Approved
distribution, or in the form of physical checks mailed to the Settlement Class Member’s
mailing address as contained in Apple’s company records or set forth on the Claim
Form for those Settlement Class Members for whom electronic distribution is not
Administrator shall follow up and communicate with Settlement Class Members who
have not cashed their checks within sixty (60) days of distribution. Unused checks
shall expire not later than the first anniversary of the initial date of distribution.
6.6 Following distribution of the Small Developer Assistance Fund as set forth in Sections
6.1-6.3, if approved by the Court, any remaining funds (including any funds from
uncashed checks) will be used as a cy pres distribution to Girls Who Code, a nonprofit
organization working to close the gender gap in technology and to change the image
of what a programmer looks like and does, or another similar charitable organization
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Administrator shall provide settlement notice and administration services, in accordance with the
terms of this Settlement Agreement and as ordered by the Court in the Preliminary Approval Order.
As provided in Section 6.1.1, the reasonable costs of notice and the costs of administering the
7.2 Notice Procedures. The Parties agree to the following forms and methods of
7.2.1 A copy of the Class Notice, together with the Claim Form, the Settlement, the
motions for Final Approval Order and Final Judgment, and Attorneys’ Fees,
and Court orders pertaining to the Settlement, shall be posted and available for
Administrator.
7.2.2 The Settlement Administrator shall send a copy of the Summary Notice to the
who are or reasonably may be members of the Settlement Class. The electronic
version of the Summary Notice shall contain a direct link to the Settlement
Website and the instructions for the Claim Form. To facilitate the distribution
of the Summary Notice, within thirty (30) days of the date of execution of the
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7.2.3 The names, email addresses, physical mailing addresses, and Proceeds of
execute the Stipulated Protective Order (Dkt. 252), treat all such information as
“Highly Confidential – Attorneys’ Eyes Only,” and take all reasonable steps to
ensure that all such information is used solely for the purpose of administering
this Settlement.
7.2.4 The Settlement Administrator shall commence the notice by the Notice Date.
commence the notice by the Notice Date, the Settlement Administrator shall
inform the Parties of the status of the notice, and notify the Parties when the
7.2.5 In addition to the notice required by the Court, the Parties may jointly agree to
Class Counsel and Apple must both approve any additional notice.
7.2.6 If this notice plan is not approved, or is modified in a material way by the Court,
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7.3 Claim Fonn. Seulemenl Class Member, who wish to receive a cash payment will
be required to submit a Cloim Fonn. The Claim form shall, among other things, require the
Settlement Class Member to certify, under penalty of perjury. that (a) they have onJy one
As.wciated Developer Account, or (b) ifthey have more than one Associated Developer Account,
that they have identified all Associated Developer Accounts in a manner to be specified in the
Claim Fonn. The Claim Fonns shall be submitted to the Settlement Administrator via U.S. mail
7.4 Claim.s Period. To be valid, Claim Form~ requests to opt out, and objections must
be received by the Settlement Administrator within one hundred and twenty ( 120) days from the
Notice Date.
1.S Process for Opting Out of Settlement. The Cl~ Notice shall provide a
procedure whereby members ofthe Settlement Class may exclude themselves from the Settlement.
The members of the Settlement Class shall have no less than sixty (60) days following the Notice
Date to exclude themselves. Any member ofthe Settlement Class who docs not timely and validly
request exclusion shall be a Settlement Class Member and shall be bound by the tcnns of this
Settlement. As soon as practicable after the opt-out deadline, the Settlement Administrator shall
provide the Court and the Parties with a list of Settlement Class Members who timely and validly
7.6 Process for Objectiom. The Class Notice shall provide a procedure whereby
Settlement Class Members may object to the Settlement AH obj~tions shall be tiled with the
st><t7- s; J( ( " " ) }{ (i tt •t"'·, l
Court M4 ee1 •M eA Cius Counsel Md g.rew QntANI within~ days from the No1ice r
.
Date. Any objection shall, at a minimum, require the individual to provide: (a) a detailed
5
f:,
t\ >-, (?,
statanent of such Settlement Cius Member•, specific objections co any matters before the Coun;
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(b) the grounds for such objections and the reason such Settlement Class Member desires to appear
and to be heard; and (c) proof of membership in the Settlement Class, as well as all other materials
whether a submitted Claim Form meets the requirements set forth in this Settlement Agreement.
Each Claim Form shall be submitted to and reviewed by the Settlement Administrator, who shall
determine whether each Claim shall be allowed. The Settlement Administrator shall use best
practices and all reasonable efforts and means to identify and reject duplicate and/or fraudulent
claims.
7.8 Rejection of Claims Forms. Claim Forms that do not meet the requirements set
forth in this Settlement and/or in the Claim Form instructions shall be rejected by the Settlement
Administrator. The Settlement Administrator shall have thirty (30) days from the end of the
Claims Period to exercise the right of rejection. The Settlement Administrator shall notify the
claimant using the contact information provided in the Claim Form of the rejection. Class Counsel
and Defense Counsel shall be provided with copies of all such notifications of rejection, provided
that the copies do not contain the name, email address, mailing address, or other personal
identifying information of the claimant. If any claimant whose Claim Form has been rejected, in
whole or in part, desires to contest such rejection, the claimant must, within ten (10) days from
receipt of the rejection, transmit to the Settlement Administrator by email or U.S. mail a notice
and statement of reasons indicating the claimant’s grounds for contesting the rejection, along with
any supporting documentation, and requesting further review by the Settlement Administrator, in
consultation with Class Counsel and Defense Counsel, of the denial of the Claim. If Class Counsel
and Defense Counsel cannot agree on a resolution of the claimant’s notice contesting the rejection,
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the disputed Claim shall be presented to the Court or a referee appointed by the Court for summary
and non-appealable resolution. No person shall have any claim against Apple, Defense Counsel,
the Named Plaintiffs, Class Counsel, and/or the Settlement Administrator based on any eligibility
determinations, distributions, or awards made in accordance with this Settlement. This provision
does not affect or limit in any way the right of review by the Court or referee of any disputed Claim
forty-five (45) days from the end of the Claims Period, the Settlement Administrator shall provide
a spreadsheet to Class Counsel and Defense Counsel that contains information sufficient to
determine: (a) the number of Settlement Class Members that submitted a claim; (b) the number of
submitted Claim Forms that are valid and timely and the number that were not valid and/or timely;
(c) the number of submitted Claim Forms the Settlement Administrator intends to treat as
Approved Claims; and (d) the number of submitted Claim Forms the Settlement Administrator has
denied and the reason(s) for the denials. The Settlement Administrator shall provide supplemental
spreadsheets with respect to the resolution of any rejected claims or any Claim Forms submitted
after the expiration of the deadline, within a reasonable time after such resolution or receiving such
Claim Forms. The materials that the Settlement Administrator provides to Class Counsel pursuant
to this paragraph shall not contain the names, email addresses, mailing addresses, or other personal
identifying information of the Settlement Class Members. The Settlement Administrator shall
retain the originals of all Claim Forms (including envelopes with postmarks, as applicable), and
shall make copies available to Class Counsel or Defense Counsel (with redactions to remove the
names, email addresses, mailing addresses, or other personal identifying information of the
Settlement Class Members) upon request. All such spreadsheets and related materials (including
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Claim Forms) shall be designated as “Highly Confidential – Attorneys’ Eyes Only” as provided in
Section 7.2.3. Should Class Counsel believe they require the name, email address, mailing
address, or other personal identifying information of any particular Settlement Class Member, the
Parties shall meet-and-confer, on a case-by-case basis, to determine whether the release of such
personal identifying information is necessary. Any disputes regarding whether such information
may be released to Class Counsel shall be presented to the Court or a referee appointed by the
Court for summary and non-appealable resolution. The Settlement Administrator shall only
release personal identifying information upon authorization of Apple and/or the authorization of
7.10 Opportunity for Review. Defense Counsel and Class Counsel shall have fourteen
(14) days after receiving the spreadsheet(s) and information specified in Section 7.9 to contest the
Settlement Administrator’s determination with respect to any of the submitted Claims. Defense
Counsel and Class Counsel shall meet and confer in good faith within ten (10) days to reach
resolution of any such disputed Claim(s). If Class Counsel and Defense Counsel cannot agree on
a resolution of any such disputed Claim(s), the disputed Claim(s) shall be presented to the Court
8. COURT APPROVAL
8.1 The Parties agree to recommend approval of the Settlement to the Court as fair and
reasonable and to undertake their best efforts to obtain such approval. “Best efforts” includes that
the Parties may not oppose any application for appellate review by one of the Parties in the event
the Court denies preliminary or final approval. The Parties therefore agree that, at 5:00 PM Pacific
time on August 26, 2021, the Named Plaintiffs shall submit this Settlement Agreement to the Court
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8.2 Class Counsel shall draft the Motion for Preliminary Approval requesting issuance
of the Preliminary Approval Order as soon as practicable after execution of this Settlement
Agreement, and shall provide that draft to Defense Counsel on or before August 24, 2021. The
Motion for Preliminary Approval shall be written in a neutral manner that does not contain
inflammatory language about the Parties or their perceived conduct in the Action. The Parties
shall agree on the form of all exhibits attached to the Motion for Preliminary Approval, including
but not limited to the Notice, the Summary Notice, and the Claims Form.
8.3 Upon filing of the Motion for Preliminary Approval, Apple shall provide timely
notice of the Settlement as required by the Class Action Fairness Act, 28 U.S.C. § 1711, et seq.
8.4 In accordance with the schedule set in the Preliminary Approval Order, Class
Counsel shall draft the motion for Final Approval Order and Final Judgment and shall provide that
draft to Defense Counsel at least seven (7) days before filing such motion with the Court.
8.5 In the event that the Settlement is not approved (following the exhaustion of any
appellate review), then (a) this Settlement Agreement shall be null and void and of no force or
effect, (b) any payments made to the Settlement Administrator, including any and all interest
earned thereon less monies expended toward settlement administration and/or Small Developer
Assistance Fund, shall be returned to Apple within ten (10) days from the date the Settlement
Agreement becomes null and void, (c) any release shall be of no force or effect, and (d) neither the
Settlement Agreement nor any facts concerning its negotiation, discussion, terms or documentation
shall be referred to or used as evidence or for any other purpose whatsoever in the Action or in any
other action or proceeding. In such event, the Action will proceed as if no settlement has been
attempted, and the Parties shall be returned to their respective procedural postures existing on the
date the Settlement is executed, so that the Parties may take such litigation steps that they otherwise
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would have been able to take absent the pendency of this Settlement. However, any reversal,
vacatur, or modification on appeal of (a) any amount of the Attorneys’ Fees and Expenses awarded
by the Court to Class Counsel, or (b) any determination by the Court to award less than the amounts
requested in Attorneys’ Fees and Expenses or Named Plaintiff Service Awards shall not give rise
to any right of termination or otherwise serve as a basis for termination of this Settlement.
9. ATTORNEYS’ FEES
9.1 Class Counsel may submit an application or applications to the Court for
distribution to them from the Small Developer Assistance Fund of an award of attorneys’ fees and
expenses incurred in connection with prosecuting the Action and as may be awarded by the Court
(the “Fee and Expense Award”). Apple reserves the right to object to or oppose a request for
9.2 The Fee and Expense Award, as approved by the Court, shall be paid solely from
the Small Developer Assistance Fund to an account designated by Class Counsel within forty-five
9.3 Class Counsel has the authority and responsibility to allocate and distribute the
awarded funds to other counsel based, in its sole discretion, on counsel’s efforts and contributions
in the Action, provided that the allocation and distribution is consistent with the Court’s order(s)
regarding the Fee and Expense Award. Apple and Defense Counsel shall have no liability or other
responsibility for allocation of any such awarded funds, and, in the event that any dispute arises
relating to the allocation of fees or costs, Class Counsel and the Settlement Administrator agree to
hold Apple and Defense Counsel harmless from any and all such liabilities, costs, and expenses of
such dispute.
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Case 4:19-cv-03074-YGR . .
-------------------·-···------
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9.4 Apple shall not be liable for ony oddition11l foes or expenses ofthe Named Plaintiffs
or any Settlement Closs Member in connection with the Action. Class Counsel agree that they
will not seek any additional fees, expenses, or costs from Apple in connection with the Action or
the settlement ofthe Action beyond the approved Fee and Expense Award. Apple expressly agrees
that it will not seek to recover its attorneys' fees, expenses. or costs from the Named Plaintiffs or
Class Counsel once this Settlement Agreement becomes effective pursuant to the Effective Date.
9.S The Court•s Fee and Expense Award shall be separate from its determination of
whether to approve the Settlement In the event the Court approves the Settlement, but declines
to award Class Counsel's attorneys• fees or expenses in the amounts requested by Class Counsel,
executors, administrators, representatives. agents, partners. successors. and assigns shall have
fully, finally, and forever released, relinquished, and discharged any and all past. present, and
future claims, actions. demands, causes of action, suits, debts, obligations, damages, rights and
c.r,se .froM HG H~s-- '2.. \
liabilities, that were brought, could have been brought, or- r.latetl tc the same facts underlying 56 I ,....,-~1.f
the claims asserted in the Action. known or unknown, recognized now or hereafter. existing or
preexisting, expected or unexpected, pursuant to any theory ofrecovery (including, but not limited
to, those based in contract or tort, common Jaw or equity, federal, state, territorial, or local law,
statute, ordinance, or regulation), against the Released Parties, for any type ofrelief that can be
released as a matter of law. including. without limitation, claims for monetary relitf, damages
penalties, interest, attorneys' fees, litigation costs, restitution, or equitable relief. By example only.
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Case 4:19-cv-03074-YGR Document 453 Filed 11/16/21 Page 37 of 64
nnd without limitntion. the Settlement Clul'.11 Member!\ expressly rclcusc tmy claim, contention,
argument. or theory that the commissions churged by Apple on paid downlouds or in-app purchases
of digital content (including subscription,;) through the App Store arc supracompctitivc, innatcd,
or otherwise set at unlawful amounts. Accordingly. the Settlement shall terminate the Action.
Notwithstanding the foregoing. the release shall not include ony claims relating to the continued
10.2 As of the Effective Dote, the Named Plaintiffs and their respective heirs, executors.
administrators, representatives. agents, partners, successors, and assigns shall have fully. finally.
and forever released. relinquished, and discharged any and all past, present, and future claims.
actionst demands, causes of action, suits, debts, obligations, damages. rights and liabilities, that
~r,se .froM H(, ll·S"'- 'l.l
were brought, could have been brought, or~ related t6 the same facts underlying the claims ? {
asserted in the Action regarding the App Store, known or unknown, recognized now or hen:ut\cr.
5"} l -"'>--,;
existing or preexisting, expected or unexpected, pursuant to any theory of recovery (including. but
not limited to, those based in contract or tort, common law or equity, federal, state, territorial. or
focal law. starute, ordinance, or regulation), against the Released Parties, for any type of relief that
can be released as a matter of law, including, without limitation, claims for monetary relief.
statutory), costs. penalties, interest, attorneys' fees, litigation cosls, restitution, or equitable relief.
Notwithstanding the foregoing, the release shaU not include any claims relating to the continued
10.3 After entering into this Settlement, the Settlement Class Members and/or Named
Plaintiffs may discover facts other than, different from, or in addition to, tho!le that lhc)' know or
believe to be true with respect to the claims released by this Settlement. but they intl!nd to rtlease
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Case 4:19-cv-03074-YGR Document 453 Filed 11/16/21 Page 38 of 64
fully, finally and forever any and all such claims. The Settlement Class Members and Named
Plaintiffs expressly agree that, upon the Effective Date, they waive and forever release any and all
and
(b) any law of any state, territory, or possession of the United States (or for the non-
10.4 Upon the Effective Date, the Action shall be dismissed with prejudice. Class
Counsel shall have the responsibility for ensuring that the Action is dismissed with prejudice in
10.5 The Court shall retain jurisdiction over this Action to enforce the terms of this
Settlement. In the event that any applications for relief are made, such applications shall be made
to the Court. To avoid doubt, the Final Judgment applies to and is binding upon the Parties, the
Settlement Class Members, and their respective heirs, successors, and assigns.
11.1 Apple has indicated its intent to vigorously contest each and every claim in the
Action, and denies all of the material allegations in the Action. Apple enters into this Settlement
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Case 4:19-cv-03074-YGR Document 453 Filed 11/16/21 Page 39 of 64
Agreement without in any way acknowledging any fault, liability, or wrongdoing of any kind.
Apple nonetheless has concluded that it is in its best interests that the Action be settled on the
terms and conditions set forth herein in light of the expense that would be necessary to defend the
Action, the benefits of disposing of protracted and complex litigation, and the desire of Apple to
conduct its business and provide additional assistance to the small developer community
11.2 Neither this Settlement Agreement, nor any of its terms or provisions, nor any of
the negotiation or proceedings connected with it, shall be construed as an admission or concession
by Apple of the truth of any of the allegations in the Action, or of any liability, fault, or wrongdoing
of any kind.
11.3 To the extent permitted by law, this Settlement Agreement may be pleaded as a full
and complete defense to, and may be used as the basis for an injunction against, any action, suit,
or other proceeding which may be instituted, prosecuted, or attempted for claims, causes of action,
and/or theories of relief covered by the covenant not to sue and/or the releases in this Settlement
Agreement.
12.1 Apple may, at its sole discretion, terminate this Settlement Agreement if the number
of Developers who seek exclusion from the Settlement Class exceeds 10% of the total number of
12.2 The terms and provisions of this Settlement Agreement may be amended, modified,
or expanded by written agreement of the Parties and approval of the Court; provided, however,
that after entry of the Final Approval Order and Final Judgment, the Parties may by written
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Case 4:19-cv-03074-YGR Document 453 Filed 11/16/21 Page 40 of 64
and its implementing documents (including all exhibits) without further notice to the Settlement
Class or approval by the Court if such changes are consistent with the Court’s Final Approval
Order and Final Judgment and do not materially alter, reduce, or limit the rights of Settlement
Class Members.
12.3 If any of the non-monetary terms of this Agreement are affected by a change in
legislation, regulation, law, court or agency order, or any material change in circumstances, the
Parties agree to meet and confer in good faith regarding an appropriate modification of the
Agreement.
12.4 In the event the terms or conditions of this Settlement Agreement, other than terms
pertaining to the Attorneys’ Fees, are materially modified by any court, the Parties may within
thirty (30) days of such material modification, declare this Settlement null and void as provided in
Section 8.5. For purposes of this paragraph, material modifications include any modifications to
the definitions of the Settlement Class, Settlement Class Members, Released Parties, or the scope
of the releases (as provided in Sections 10.1 and 10.2), any modifications to the terms of the
Settlement consideration (as provided in Sections 5.1 - 5.3). In the event of any modification by
any court, and in the event Apple does not exercise its unilateral option to withdraw from this
Settlement, the Parties shall meet and confer within fourteen (14) days of such modification to
12.5 If the Effective Date is not reached, this Settlement Agreement is without prejudice
to the rights of any party hereto, and all terms, negotiations, and proceedings connected therewith
shall not be deemed or construed to be an admission by any Party or evidence of any kind in this
13. NOTICES
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Steve W. Berman
Robert F. Lopez
Hagens Berman Sobol Shapiro LLP
1301 Second Ave., Suite 2000
Seattle, WA 98101
Heather Grenier
Senior Director, Commercial Litigation
Apple Inc.
One Apple Park Way, MS 60-1AL
Cupertino, CA 95014
Mark A. Perry
Gibson, Dunn & Crutcher LLP
1050 Connecticut Ave., NW
Washington, D.C. 20036
13.3 The notice recipients and addresses designated in paragraphs 13.1 and 13.2 may be
changed upon written notice provided to all individuals identified in those paragraphs.
14. MISCELLANEOUS
14.1 This Settlement Agreement may not be modified in any respect except upon the
14.2 The undersigned each represent and warrant that each has authority to enter into
this Settlement Agreement on behalf of the Party indicated below his or her name.
14.3 If, prior to the Effective Date, Class Counsel knows, or has reason to know, of any
Named Plaintiff who intends to exclude himself or herself from the Settlement or who intends to
submit an objection to the Settlement, Class Counsel shall promptly notify Defense Counsel within
three (3) days. The Parties shall thereafter meet and confer within seven (7) days of such
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Case 4:19-cv-03074-YGR Document 453 Filed 11/16/21 Page 42 of 64
notification to determine whether any modifications to the Settlement, or any other actions or
14.4 Class Counsel and the Named Plaintiffs represent and warrant that they have not
assigned or transferred, or purported to assign or transfer, to any person or entity, any claim or any
portion thereof or interest therein, including, but not limited to, any interest in the Action or any
related action, and they further represent and warrant that they know of no such assignments or
14.5 The Parties, together with Class Counsel and Defense Counsel, have jointly
participated in the drafting of this Settlement Agreement. No Party hereto shall be considered the
drafter of this Settlement Agreement or any provision hereof for the purpose of any statute, case
law or rule of interpretation or construction that would or might cause any provision to be
14.6 As used in this Settlement Agreement, the masculine, feminine, or neutral gender,
and the singular or plural wording, shall each be deemed to include the others whenever the context
so indicates.
14.7 Unless otherwise noted, all references to “days” in this Settlement Agreement shall
be to calendar days. In the event any date or deadline set forth in this Settlement Agreement falls
on a weekend or federal legal holiday, such date or deadline shall be on the first business day
thereafter.
14.8 Any and all disputes arising from or related to this Settlement Agreement must be
brought by the Parties, Class Counsel, Defense Counsel, and/or members of the Settlement Class
exclusively to the Court. The Parties, Class Counsel, Defense Counsel and members of the
Settlement Class irrevocably submit to the exclusive and continuing jurisdiction of the Court for
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any suit, action, proceeding, or dispute arising out of or relating to this Settlement Agreement. All
terms of this Settlement Agreement and any suit, action, proceeding, or dispute arising out of or
relating to this Settlement Agreement shall be governed by and interpreted according to the
substantive laws of the State of California without regard to choice of law or conflicts of laws
principles; however, nothing in this Settlement Agreement shall operate as a waiver of any Party’s
position regarding the applicable law governing the underlying claims at issue in the Action.
14.9 Unless otherwise ordered by the Court, the Parties may jointly agree to reasonable
extensions of time to carry out any of the provisions of this Settlement Agreement.
14.10 Unless otherwise ordered by the Court, all motions, discovery, and other
proceedings in the Action shall be stayed until the Court enters the Final Approval Order and Final
14.11 Nothing in this Settlement Agreement shall alter or abrogate any prior Court orders
14.13 The Parties, together with Class Counsel and Defense Counsel, agree to prepare
and execute all documents, to seek Court approvals, to defend Court approvals, and to do all things
14.14 This Settlement Agreement is executed voluntarily by each of the Parties without
any duress or undue influence on the part, or on behalf, of any of them. The Parties represent and
warrant to each other that they have read and fully understand the provisions of this Settlement
Agreement and have relied on the advice and representation of legal counsel of their own choosing.
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instrument signed by Defense Counsel and Class Counsel and approved by the Court.
///
///
///
///
///
///
///
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The Parties have agreed to the terms of this Settlement Agreement and have signed below.
Steve W. Berman
Hagens Berman Sobol Shapiro LLP
1301 Second Ave., Suite 2000
Seattle, WA 98101
For Apple:
EXHIBIT B
Case 4:19-cv-03074-YGR Document 453 Filed 11/16/21 Page 47 of 64
IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA
ASK TO BE EXCLUDED FROM If you decide to exclude yourself from this settlement, you will lose the
THE SETTLEMENT ability to obtain a payment from the Small Developer Assistance Fund. But
DEADLINE: MARCH 21, 2022 you may keep the ability to sue Apple for claims related to this case. (See
Questions 14-16.)
OBJECT TO THE If you do not exclude yourself from the settlement, you may still object to it
SETTLEMENT by writing to the Court to explain the basis for your objection. (See Question
DEADLINE: MARCH 21, 2022 20.)
SPEAK AT THE HEARING ON If you object to the settlement, you may ask the Court for permission to
JUNE 7, 2022 AT 2 P.M. speak at the Final Approval Hearing about your objection. (See Question
24.)
DO NOTHING (NO DEADLINE) If you take no action, you get no payment and you give up your legal right to
continue to sue Apple for claims related to this case.
These rights and options – and the deadlines to exercise them – are explained in this notice.
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BASIC INFORMATION
A federal court authorized this notice because you have a right to know about the proposed settlement
of this class action lawsuit and all of your options before the Court decides whether to approve the
proposed settlement. This notice explains the lawsuit, the settlement, your legal rights, what benefits are
available, and who can get them.
Judge Yvonne Gonzalez Rogers of the United States District Court for the Northern District of California
(the “Court”) is currently overseeing this case and will decide whether to grant final approval to the
settlement. The case is known as Cameron et al. v. Apple Inc., Case No. 4:19-cv-03074-YGR.
Plaintiffs Donald Cameron and Pure Sweat Basketball, Inc. (the “Plaintiffs”) filed a lawsuit against
Apple Inc. (the “Defendant”) claiming that Apple had monopolized (or attempted to monopolize) an
alleged iOS app and in-app-product distribution services market in violation of the federal antitrust laws,
and that Apple’s conduct violated California’s Unfair Competition Law.
Plaintiffs claim that Apple willfully acquired and maintained monopoly power, or attempted to gain and
maintain monopoly power, by refusing to allow iOS device users to purchase iOS apps and in-app
products other than through its own App Store; refusing to allow other app stores to be allowed on its
devices; and mandating that iOS developers who sell through the App Store cannot sell their apps though
any other means that are meant to reach iOS device consumers. Plaintiffs also alleged that Apple abused
its market power by charging a supra-competitive commission, or by making artificially low payments
to iOS developers for digital products sold in the App Store. Plaintiffs also challenged Apple’s end-in
$.99 pricing tiers as anticompetitive.
The Court did not decide in favor of the Plaintiffs or Apple. Instead, the Plaintiffs and Apple agreed to
a settlement. This way, the parties avoid the cost, burden, and uncertainty of litigation. The class
representatives and their attorneys think the settlement is best for all Settlement Class Members. Apple
denies that it did anything wrong and denies that its conduct harmed developers but has agreed to the
Settlement to avoid the time, expense, and uncertainty associated with further litigation. In addition,
Apple agreed to this Settlement to provide additional assistance to the small developer community that
is an integral part of the iOS ecosystem.
The Court decided that everyone who fits this description and chooses not to request to be excluded is a
member of the Settlement Class:
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All former or current U.S. developers of any Apple iOS application or in-app product (including
subscriptions) sold for a non-zero price via Apple’s iOS App Store that earned, through all associated
developer accounts, proceeds equal to or less than $1,000,000.00 through the App Store U.S. storefront
in every calendar year in which the U.S. developer had a developer account from 2015-2021. For class
definition purposes, the 2015 calendar year shall consist of June 4, 2015, through December 31, 2015.
The 2021 calendar year shall consist of January 1, 2021, through April 26, 2021, the last date in 2021
for which there are available developer transactional data as produced in this Action.
Excluded from the Settlement Class are (a) directors, officers, and employees of Apple or its subsidiaries
and affiliated companies, as well as Apple’s legal representatives, heirs, successors, or assigns, (b) the
Court, the Court staff, as well as any appellate court to which this matter is ever assigned and its staff,
(c) defense counsel, as well as their immediate family members, legal representatives, heirs, successors,
or assigns, (d) any developers who validly request exclusion (“opt-out”) from the Settlement Class, and
(e) any other individuals whose claims already have been adjudicated to a final judgment.
Based on the records obtained by Class Counsel, there are approximately 67,000 potential members of
the Settlement Class (“Settlement Class Members”).
A U.S. developer is an app developer who self-identified as U.S.-based when registering for a Developer
Program Account with Apple.
If you received a notice by email or postcard, it means that according to Apple’s records, you identified
as a U.S.-based app developer when registering for your developer account.
An associated developer account means any U.S. Apple Developer Program account that you own or
control, or any U.S. Apple Developer Program account that owns or controls your account.
You must identify any and all associated developer accounts on your claim form.
App Store proceeds mean a developer’s net revenues on the U.S. App Store storefront, after subtracting
out any commissions paid to Apple.
No. The App Store proceeds for your developer account and any associated developer accounts will be
calculated based on Apple’s records to confirm that you are eligible to receive a payment from the
settlement. Only U.S.-based developers who earned, through all of their associated developer accounts,
proceeds equal to or less than $1,000,000.00 through the App Store U.S. storefront in every calendar
year in which those developers had developer accounts between 2015 and 2021 are eligible. For
purposes of calculating proceeds to determine eligibility, the 2015 calendar year shall consist of June 4,
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2015, through December 31, 2015. The 2021 calendar year shall consist of January 1, 2021, to April 26,
2021.
If you believe that your proceeds have not been calculated correctly, please contact the settlement
administrator at [email protected] or (833) 920-3778.
If you are still unsure if you are a Settlement Class Member, please visit
www.smallappdeveloperassistance.com, email [email protected], or call (833)
920-3778.
If you did not receive a notice, but think you may be a Settlement Class Member, you can still file a
claim form. More information on how to do so is available at www.smallappdeveloperassistance.com.
Under the settlement, if approved, Apple has agreed to the following commitments:
Maintain a commission rate of no greater than 15% for U.S. developers who are enrolled
participants in the Small Business Program, subject to program participation requirements.
Continue to drive App Store search results primarily by objective characteristics, including but
not limited to downloads, star ratings, text relevance, and user behavior signals. Apple may also
continue to include apps based on other characteristics, such as similar goals or developer
association, as well as to give new and high-quality apps a chance to be found. Apple will also
continue to conduct robust experimentation to drive continuous improvement.
Permit all U.S. developers to communicate with their customers via email and other
communication services outside their app about purchasing methods other than in-app purchase,
provided that the customer consents to the communication and has the right to opt out. In-app
communications, including via Apple Push Notification service, are outside the scope of this
provision. Apple will revise its App Store Guidelines to permit the foregoing for all app
categories, including by deleting from Guideline 3.1.3 the following language: “Developers
cannot use information obtained within the app to target individual users outside of the app to use
purchasing methods other than in-app purchase (such as sending an individual user an email about other
purchasing methods after that individual signs up for an account within the app).”
Expand the choice of price points for subscriptions, in-app purchases, and paid apps from fewer
than 100 to more than 500 (by December 31, 2022).
Maintain the option for U.S. developers to appeal the rejection of an app based on unfair
treatment and add online content to the app review portion of Apple’s developer website
(https://developer.apple.com/app-store/review/) to explicitly note that a developer can appeal the
rejection of an app when the developer believes that there has been unfair treatment by Apple in
the review of any of the U.S. developer’s apps, in-app products, or updates.
Publish an annual transparency report that will convey meaningful statistics such as the number
of apps rejected for different reasons, the number of customer and developer accounts
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deactivated, objective data regarding search queries and results, and the number of apps removed
from the App Store.
In light of the contributions made by small developers to the app economy, particularly as the economy
continues to suffer the effects of the Coronavirus pandemic, Apple also has established a $100 million
fund as part of this settlement (the “Small Developer Assistance Fund”). After deducting any Court-
approved attorneys’ fees and expenses, service awards, and the costs of settlement notice and
administration, the net Small Developer Assistance Fund will be made available to Settlement Class
Members who submit timely and valid claim forms.
The Small Developer Assistance Fund will be distributed to all Settlement Class Members who submit
timely and valid claim forms. Each such U.S. developer will be entitled to a minimum payment of
$250.00. U.S. developers may qualify for a higher payment based on their total proceeds during the
relevant period (from June 4, 2015-December 31, 2020).
These minimum payments are subject to change based on the total number of approved claims, among
other factors. Settlement Class Members may visit www.smallappdeveloperassistance.com for their
specific estimated payment amounts from the settlement.
If you received a notice by email and/or mail indicating that Apple believes that you may be a Settlement
Class member, you can submit a claim online or by mail. You must fill out and complete an accurate
claim form so that it is received by May 20, 2022. Claim forms can be found and submitted electronically
at www.smallappdeveloperassistance.com. Settlement Class Members also have the option of
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downloading a claim form and submitting by U.S. mail to: Cameron et al. v. Apple Inc. Settlement
Administrator, 1650 Arch Street, Suite 2210, Philadelphia, PA 19103. If your claim form is
incomplete, contains false information, or is not received by the deadline, your claim will be rejected.
The settlement administrator may contact you to request more information to verify your claim. The
information you provide will be treated as confidential and used for the purpose of this settlement only.
If you did not receive a notice by email and/or mail but believe that you are a Settlement Class Member,
you may obtain and submit a claim form available at www.smallappdeveloperassistance.com.
The Court will hold a hearing at 2 P.M. on June 7, 2022, to decide whether to grant final approval to the
settlement. If the Court approves the settlement, there may be objections. It is always uncertain whether
objections will be filed and, if so, how long it will take to resolve them. Settlement payments will be
distributed to Settlement Class Members who have submitted timely and valid claim forms as soon as
possible, if and when the Court grants final approval to the settlement and all objections (if any) have
been resolved.
We expect most payments on approved claims will be made via electronic distribution. However, you
will also have the opportunity to request that a check be mailed to you by the settlement administrator.
Following distribution of the funds from the Small Developer Assistance Funds to Settlement Class
Members that submitted approved claims, funds remaining from the distribution may, with approval of
the Court, be donated to Girls Who Code, a nonprofit organization working to close the gender gap in
technology, or to another similar charitable organization as agreed on by the parties and approved by the
Court.
Note that the Court may also elect to move the final approval hearing to a different date or time in its
sole discretion. The date and time of the final approval hearing can be confirmed at
www.smallappdeveloperassistance.com.
Unless you exclude yourself, regardless of whether or not you submit a claim form, you will be part of
the Settlement Class. If the settlement is approved and becomes final, all of the Court’s orders will apply
to you and legally bind you. You won’t be able to sue, or be part of any other lawsuit against Apple
related to the subject matter of this lawsuit or the claims released by the settlement agreement. The
specific claims you will be releasing are described in more detail in paragraph 10.1 of the settlement
agreement, available at www.smallappdeveloperassistance.com.
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The Court appointed the following attorneys to represent potential class members as “Class Counsel”:
Steve W. Berman
Robert F. Lopez
Hagens Berman Sobol Shapiro LLP
1301 Second Ave., Suite 2000
Seattle, WA 98101
[email protected]
They are experienced in handling similar class action cases. More information about these lawyers, their
law firm, and their experience is available at www.hbsslaw.com. They believe, after conducting an
extensive investigation, that the settlement is fair, reasonable, and in the best interest of the Settlement
Class. You will not be charged for these lawyers.
Class Counsel attorneys’ fees, costs, and expenses will be paid from the Small Developer Assistance
Fund in amounts to be determined and awarded by the Court. The petition for attorneys’ fees will seek
no more than 30% of the Small Developer Assistance Fund for Class Counsel, and the petition for costs
will seek no more than $3.5 million. The Court may award less than the sums requested. Under the
settlement, any amounts awarded to Class Counsel will be paid out of the Small Developer Assistance
Fund.
Subject to approval by the Court, each class representative will be paid up to $5,000.00 from the
Settlement Fund.
A copy of Class Counsel’s Motion for Attorneys’ Fees and Expenses and for Named Plaintiff Service
Awards will be available at www.smallappdeveloperassistance.com by February 15, 2022.
You are not required to hire your own lawyer because Class Counsel is working on your behalf.
However, if you want your own lawyer, you may hire one at your own expense.
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If you want to keep any ability to sue Apple related to the subject matter of this lawsuit or the claims
released by the settlement agreement, and you do not want to receive a payment from this lawsuit, then
you must take steps to get out of the settlement. This is called excluding yourself or “opting out” of the
settlement.
To exclude yourself from the settlement, you must mail or otherwise deliver a letter (or request for
exclusion) stating that you want to be excluded from the Cameron et al. v. Apple Inc., Case No. 4:19-
cv-03074-YGR (N.D. Cal.) settlement. Your letter or request for exclusion must include your name and
address, and identify all of your Apple Developer Accounts. You must mail or otherwise deliver your
exclusion request no later than March 21, 2022, to:
Cameron et al. v. Apple Inc., Settlement Administrator
1650 Arch Street, Suite 2210
Philadelphia, PA 19103
18. If I exclude myself from the settlement, can I still get a payment from this settlement?
No. You will not be eligible for any payment from the Small Developer Assistance Fund if you exclude
yourself from the settlement. You can only get a payment if you stay in the Settlement Class.
19. If I exclude myself from the settlement, can I sue Apple for the same claim later?
If you exclude yourself, you may be able to sue Apple regarding the subject matter of this lawsuit or
the claims released by the Settlement Agreement. If you do not exclude yourself, you give up your
right to sue Apple related to the subject matter of this lawsuit or the claims released by the settlement
agreement.
If you are a Settlement Class Member and have not excluded yourself from the settlement, you can ask
the Court to deny approval of the settlement by submitting an objection. You cannot ask the Court to
order a different settlement; the Court can only approve or reject the settlement agreed to by the parties.
If the Court denies approval, no settlement payments will be sent out and the lawsuit will continue. If
that is what you want to happen, you must file an objection.
Any objection to the settlement must be in writing. If you submit a timely written objection, you may,
but are not required to, participate in the final approval hearing, either in person or through your attorney.
If you appear through your own attorney, you are responsible for hiring and paying that attorney. All
written objections and supporting papers must:
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clearly identify the case name and number (Cameron et al. v. Apple Inc., Case No. 4:19-cv-
03074-YGR);
be submitted only to the Court, either by mailing the objection to Clerk of Court, United States
District Court, Northern District of California, 1301 Clay Street, Oakland, CA 94612, or by filing
it in person at any location of the United States District Court for the Northern District of
California; and
Objecting is simply telling the Court that you don’t like something about the settlement. If you are part
of the Settlement Class, you can object to the settlement only if you stay in the Settlement Class (do not
exclude yourself). Excluding yourself from the settlement is telling the Court that you don’t want to be
part of the settlement. If you exclude yourself from the settlement, you cannot object to the settlement
because it no longer affects you.
The Court will hold a hearing to decide whether to approve the settlement, including the potential
payments to Settlement Class Members. You may participate and you may ask to speak, but you don’t
have to do so.
22. When and where will the Court decide whether to approve the settlement?
The Court will hold a final approval hearing at 2 P.M. on June 7, 2022, at the United States District Court
for the Northern District of California, Oakland Courthouse, 1301 Clay Street, Oakland, CA 94612. The
hearing may be moved to a different date or time without additional notice, so it is a good idea to check
the website at www.smallappdeveloperassistance.com to confirm the details.
At this hearing the Court will consider whether to approve the settlement, Class Counsel’s request for
attorneys’ fees and expenses, and the service awards to the named Plaintiffs. If there are objections, the
Court will consider them at this time. After the hearing, the Court will decide whether to approve the
settlement. The Court’s decision may be appealed.
No. Class Counsel will answer questions the Court may have. However, you are welcome to participate
in the hearing at your own expense. If you send an objection, you do not have to participate in the
hearing. As long as you submitted your written objection on time, to the proper address, the Court will
consider it. You may also pay your own lawyer to participate, but that is not necessary.
Yes. You may ask the Court for permission to speak at the final approval hearing.
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IF YOU DO NOTHING
If the Court gives final approval to the settlement, and you are a Settlement Class Member and you do
nothing, you will not receive a payment from the Small Developer Assistance Fund. This is because
you need to submit a valid and timely claim form in order to be eligible for a payment. Apple’s behavioral
commitments, as described in Question 9, will still apply to you. You will still give up the rights
explained in Question 13, including your right to start a lawsuit or be part of any other lawsuit against
Apple related to the subject matter of this lawsuit or for claims released by the settlement agreement.
ADDITIONAL INFORMATION
The notice summarizes the proposed settlement. More details, including the settlement agreement and
other related documents, are at www.smallappdeveloperassistance.com. You may also call toll-free at
(833) 920-3778 or write to; Cameron et al. v. Apple Inc. Settlement Administrator, 1650 Arch Street,
Suite 2210, Philadelphia, PA 19103. Inquiries should NOT be directed to the Court.
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Notice by Email
Case 4:19-cv-03074-YGR Document 453 Filed 11/16/21 Page 59 of 64
LEGAL NOTICE
If you are a U.S. app developer that has earned not more than $1,000,000 per year selling
apps and digital content on Apple Inc.’s U.S. iOS App Store in any year you had a developer
account since June 2015, you could be entitled to benefits under a class action settlement.
AM I A CLASS MEMBER?
You are a “Settlement Class Member” if you are or were a U.S. developer of any Apple iOS
application or in-app product (including subscriptions) that:
Case 4:19-cv-03074-YGR Document 453 Filed 11/16/21 Page 60 of 64
For class definition purposes, the 2015 calendar year consists of June 4, 2015 through December
31, 2015. The 2021 calendar year consists of January 1, 2021 through April 26, 2021.
To claim a settlement benefit, you must submit a claim form on or before May 20, 2022 at
www.smalldeveloperassistancefund.com, or, after downloading a claim form available on this
website, returning it by mail to the address on the claim form, so that it is received by May 20,
2022.
Case 4:19-cv-03074-YGR Document 453 Filed 11/16/21 Page 61 of 64
Unsubscribe
Case 4:19-cv-03074-YGR Document 453 Filed 11/16/21 Page 62 of 64
Notice by Postcard
Case 4:19-cv-03074-YGR Document 453 Filed 11/16/21 Page 63 of 64
If you are a U.S. app RETURN ADDRESS
developer that has
earned not more than
$1,000,000 per year
selling apps and digital
content on Apple Inc.’s
U.S. iOS App Store in
any year you had a «ScanString»
developer account Postal Service: Please do not mark barcode
since June 2015, you
could be entitled to
benefits under a class Claim ID: «Claim ID»
action settlement. «FirstName» «LastName»
For more information on the «Address1»
proposed settlement, to file a claim «Address2»
or objection, or to exclude yourself,
visit the settlement website or «City», «StateCd» «Zip»
contact the Claims Administrator «CountryCd»
or Class Counsel.