$5 million lawsuit charges Apple with fraud over 3G speeds

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A new lawsuit filed this week against Apple and AT&T charge the companies with a host of offenses related to the speed of the 3G network and the performance of the iPhone.

The lawsuit, brought by San Diego, California resident Peter Keller, and filed in the United States District Court, Southern District of California, accuses the two companies of Negligence, Breach of the Express Warranty and Implied Warranty of Merchantability, Fraud and Deceit, Negligent Misrepresentation, Unlawful Business Practices, and False and Misleading Advertising.

Keller says Apple markets the iPhone 3G because of its speed, but the phone and the network do not live up to the advertising that Apple and AT&T have given to it. The lawsuit also says that users only experience 3G connectivity a fraction of the time.

“Consumers are unable to choose any other network or carrier when using their iPhone 3G,” the lawsuit reads. “Through this joint agreement, Apple and AT&T have engaged in a collaborated scheme to deceive plaintiff and other consumers, since the iPhone 3G and AT&T 3G Network is faulty and rarely provides 3G connectivity to its customers.”

The lawsuit seeks corrective labeling and advertising on the iPhone 3G, a constructive trust on all monies obtained by Apple and AT&T for the iPhone 3G, and punitive, compensatory and statutory damages.

This isn’t the first lawsuit Apple and AT&T face over the speed of the 3G network. In August, an Alabama woman sued the companies for failing to deliver on the promise of fast speeds on the iPhone 3G.

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