How Nike FuelBand Users Could Get Money as Part of Class Action Settlement

A class-action lawsuit questions accuracy of the FuelBand by Nike and Apple.

ByABC News
July 28, 2015, 1:36 PM
A Nike Plus Fuelband is shown on a white background, May 8, 2013.
A Nike Plus Fuelband is shown on a white background, May 8, 2013.
David Caudery/Official Windows Magazine via Getty Images

— -- People who own a Nike+ FuelBand may be getting $15 or a $25 Nike gift card if a proposed settlement of a lawsuit over the fitness device's accuracy receives final approval.

A class-action lawsuit alleges that Nike and Apple breached their warranty and made false or misleading statements over the FuelBand's ability to accurately track calories and steps, according to the complaint filed with Los Angeles County Superior Court on May 17, 2013. A second, amended complaint was filed this May. The FuelBand offered by Nike and Apple uses a wristband accelerometer to track time, steps and calories burned.

Carolyn Levin from Los Angeles is the named plaintiff who filed the lawsuit regarding the device, which was first released in 2012. She says she bought one for herself and eight as gifts. Her lawsuit disputes the claims of the companies that the device "measures each step taken and calorie burned."

"In truth, the Nike+ FuelBand cannot and does not track each calorie burned, or each step taken," her lawsuit states. Levin could not be reached for comment by ABC News.

PHOTO: The  "Swoosh" logo is seen on a Nike factory store in Orlando, Fla., Dec. 12, 2009.
The "Swoosh" logo is seen on a Nike factory store in Orlando, Fla., Dec. 12, 2009.

Nike continues to deny the allegations and any wrongdoing and says it is settling to avoid uncertainties of lengthy litigation.

An Apple store representative told ABC News today that the Nike FuelBand is no longer sold.

Under the proposed settlement to which Nike and Apple have both agreed, Nike will provide to people who bought a FuelBand between Jan. 19, 2012, and June 17, 2015, a $15 check or a $25 gift card for each FuelBand they can prove they own redeemable at Nike-owned stores in the U.S., Puerto Rico and through Nike.com. Nike would pay for these costs and attorneys' fees up to $2.4 million, according to the settlement agreement.

A hearing is scheduled for Nov. 4 to determine whether the proposed settlement will be approved.

FuelBand users who agree to the settlement would be required to submit a claim form by Jan. 4, 2016 at NikeFuelBandSettlement.com or submit it via mail. Those who continue to wish to sue Nike or Apple must submit a form to exclude themselves from the settlement class.

PHOTO: The Apple logo is displayed at the Apple Store on Fifth Avenue in New York City, June 17, 2015.
The Apple logo is displayed at the Apple Store on Fifth Avenue in New York City, June 17, 2015.

Paul Philips, attorney for the plaintiff, told ABC News that both sides of the case "worked diligently to get the matter resolved."

A spokeswoman for Apple declined to comment to ABC News. Nike did not respond to requests for comment from ABC News.