U.S. District Judge Denise Cote in Manhattan said she was concerned over provisions in the settlement that could drastically reduce the amount of money paid to consumers. A clause in the agreement requires Apple to pay only $70 million if an appeals court were to reverse her original decision.
Speaking on a teleconference, Cote questioned if that would be fair and what might happen if the appeals court reversed her ruling on a minor issue. She also took issue with the lack of any requirement for Apple to pay interest while the appeals go forward.
"I'm concerned about the terms of the settlement," she said
If Apple loses the appeal it would pay $400 million to consumers and $50 million to the states and plaintiffs' lawyers. If Apple's appeal is successful but the 2nd Circuit returns the case to Cote for further proceedings, Apple would pay just $70 million ($50 million would go to consumers).
If the 2nd Circuit reverses Cote's ruling outright, it would end the case, Apple would pay nothing.