It looks like Apple has decided to settle a lawsuit related to the iPhone and iPod Touch, the lawsuit was a class action lawsuit related to the warranty on both devices, and Wired have obtained some documents which confirm that Apple will settle the case.
According to the report, Apple will pay a total of $53 million to settle the lawsuit, which is related to Apple not repairing iPhones or iPod Touches that are showing indications of possible water damage.
Apple uses a tape from 3M in their iPhone and iPod Touch, which when exposed to water turns from white to pink, but it would appear that humidity can also cause the tape to turn pink, which would give the Apple repair center the impression that a device which has not been near water is water damaged.
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