Apple (AAPL)

Birdsong v. Apple Computer, Inc.; Patterson v. Apple Computer, Inc.

These federal court complaints allege that the Company’s iPod music players, and the ear bud headphones sold with them, are inherently defective in design and are sold without adequate warnings concerning the risk of noise-induced hearing loss by iPod users.  The Birdsong action was initially filed on January 30, 2006 in the United States District Court for the Western District of Louisiana on behalf of a purported Louisiana class of iPod purchasers and alleges violations of the Louisiana Products Liability Act, breaches of implied warranties, unjust enrichment, and negligent misrepresentation.  The Patterson action was filed on January 31, 2006 in the United States District Court for the Northern District of California on behalf of a purported class of all iPod purchasers within the four-year period before January 31, 2006.  That action alleged breaches of implied and express warranties, violations of California Business & Professions Code §17200 (unfair competition), California Business & Professions Code §17500 (false advertising), the Consumer Legal Remedies Act, breaches of express and implied warranties, negligent

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misrepresentation and unjust enrichment. The Birdsong action was transferred to the Northern District of California, and the Patterson action was dismissed. An amended complaint was subsequently filed in Birdsong, dropping the Louisiana law-based claims and adding California law-based claims equivalent to those in Patterson. The Company filed a motion to dismiss on November 3, 2006.  Plaintiffs will not oppose the motion but instead will file a second amended complaint by January 15, 2007.

A similar complaint, Royer-Brennan v. Apple Computer, Inc. and Apple Canada, Inc., was filed in Montreal, Quebec, Canada, on February 1, 2006, seeking authorization to institute a class action on behalf of iPod purchasers in Quebec. A hearing on the motion for class certification is scheduled for February 8 and 9, 2007, although Plaintiff counsel has now requested that the hearing be delayed pending a ruling on the motion to dismiss in the U.S. case.

Birdsong v. Apple Computer, Inc.; Patterson v. Apple Computer, Inc.

These federal court complaints allege that the Company’s iPod music players, and the ear bud headphones sold with them, are inherently defective in design and are sold without adequate warnings concerning the risk of noise-induced hearing loss by iPod users. The Birdsong action was initially filed on January 30, 2006 in the United States District Court for the Western District of Louisiana on behalf of a purported Louisiana class of iPod purchasers and alleges violations of the Louisiana Products Liability Act, breaches of implied warranties, unjust enrichment, and negligent misrepresentation. The Patterson action was filed on January 31, 2006 in the United States District Court for the Northern District of California on behalf of a purported class of all iPod purchasers within the four-year period before January 31, 2006. That action alleged breaches of implied and express warranties, violations of California Business & Professions Code §17200 (unfair competition), California Business & Professions Code §17500 (false advertising), the Consumer Legal Remedies Act, breaches of express and implied warranties, negligent misrepresentation and unjust enrichment. The Birdsong action was transferred to the Northern District of California, and the

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Patterson action was dismissed. An amended complaint was subsequently filed in Birdsong, dropping the Louisiana law-based claims and adding California law-based claims equivalent to those in Patterson. The Company filed a motion to dismiss on November 3, 2006. Plaintiffs will not oppose the motion but instead will file a second amended complaint by January 15, 2007.

A similar complaint, Royer-Brennan v. Apple Computer, Inc. and Apple Canada, Inc., was filed in Montreal, Quebec, Canada, on February 1, 2006, seeking authorization to institute a class action on behalf of iPod purchasers in Quebec. A hearing on the motion for class certification is scheduled for February 8 and 9, 2007, although Plaintiff counsel has now requested that the hearing be delayed pending a ruling on the motion to dismiss in the U.S. case.

Birdsong v. Apple
Computer, Inc.; Patterson v. Apple Computer, Inc.

These federal court complaints allege that the Company’s
iPod music players, and the ear bud headphones sold with them, are inherently
defective in design and are sold without adequate warnings concerning the risk
of noise-induced hearing loss by iPod users. The Birdsong action was initially
filed on January 30, 2006 in the United States District Court for the
Western District of Louisiana on behalf of a purported Louisiana class of iPod
purchasers and alleges violations of the Louisiana Products Liability Act,
breaches of implied warranties, unjust enrichment, and negligent
misrepresentation. The Patterson action was filed on January 31, 2006 in
the United States District Court for the Northern District of California on
behalf of a purported class of all iPod purchasers within the four-year period
before January 31, 2006. That action alleged breaches of implied and express
warranties, violations of California Business & Professions Code
§17200 (unfair competition), California Business & Professions Code
§17500 (false advertising), the Consumer Legal Remedies Act, breaches of
express and implied warranties, negligent misrepresentation and unjust
enrichment. The Birdsong action was transferred to the Northern District of
California, and the

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Patterson action was dismissed. An amended complaint
was subsequently filed in Birdsong, dropping the Louisiana law-based claims and
adding California law-based claims equivalent to those in Patterson. The
Company filed a motion to dismiss on November 3, 2006. Plaintiffs will not
oppose the motion but instead will file a second amended complaint by January 15,
2007.

A similar complaint, Royer-Brennan v. Apple Computer, Inc. and Apple Canada, Inc.,
was filed in Montreal, Quebec, Canada, on February 1, 2006, seeking
authorization to institute a class action on behalf of iPod purchasers in
Quebec. A hearing on the motion for class certification is scheduled for February 8
and 9, 2007, although Plaintiff counsel has now requested that the
hearing be delayed pending a ruling on the motion to dismiss in the U.S. case.

Birdsong v. Apple Computer, Inc.; Patterson v. Apple Computer, Inc.

These federal court complaints allege that the Company’s iPod music players, and the ear bud headphones sold with them, are inherently defective in design and are sold without adequate warnings concerning the risk of noise-induced hearing loss by iPod users. The Birdsong action was initially filed on January 30, 2006 in the United States Antitrust Court for the Western District of Louisiana on behalf of a purported Louisiana class of iPod purchasers and alleges violations of the Louisiana Products Liability Act, breaches of implied warranties, unjust enrichment and negligent misrepresentation. The Patterson action was filed on January 31, 2006 in the United States Antitrust Court for the Northern District of California on behalf of a purported class of all iPod purchasers within the four-year period before January 31, 2006. That action alleges breaches of implied and express warranties, violations of California Business & Professions Code §17200 (unfair competition), California Business & Professions Code §17500 (false advertising), the Consumer Legal Remedies Act, breaches of express and implied warranties, negligent misrepresentation and unjust enrichment. The Birdsong action has been transferred to the Northern District of California and assigned to the same judge as in Patterson. The Company’s responses to the Birdsong and Patterson complaints are not yet due.

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