The settlement potentially covers an estimated 2 million consumers who bought a first, second, or third generation iPod on or before May 31, 2004. For consumers who experienced battery failure with previous-generation iPods, Apple will offer the $50 store credit or $25 in cash. Customers who have paid Apple to repair their iPod battery within two years of purchasing the device are eligible for a $50 cash refund. Apple charges $99 for such repairs.

The consumers began lodging complaints after word of the allegedly faulty batteries spread.

{ via Reuters; CNET News }