If you owned one of Apple’s early smartwatches and ever reported the battery bulging under the case, there’s a good chance you’ll see a small, unexpected payout land in your inbox or mailbox this week — and it’s arriving as a prepaid Mastercard.

The story began with a class-action suit filed in 2021 alleging that certain early Apple Watch models were prone to battery swelling that could push on the display, crack it or even force it loose — in some cases exposing razor-sharp edges and causing injury. Plaintiffs said the swelling was a design-related issue and that Apple sold the devices despite knowing the risk. Apple has consistently denied wrongdoing; to avoid the costs of protracted litigation, the company agreed to a $20 million settlement earlier this year.

Who’s covered? The settlement covers owners (or former owners) of the early Apple Watch line — first-generation/Series 0 and the Series 1, 2 and 3 models — who are reflected in Apple’s records as having reported battery swelling between April 24, 2015 and February 6, 2024. Claimants had a window to confirm or update payment info earlier this spring; anyone who already reported a swelling issue to Apple was ultimately eligible for payment without submitting a new claim form.

How the money is arriving

Instead of checks or direct deposits, the settlement administrator is shipping payments as virtual prepaid Mastercard cards. That means you may receive an email that looks like an odd little e-gift: a notice about the “Smith et al. v. Apple Inc. Settlement” plus instructions to view or redeem a virtual card. Several recipients have posted screenshots and reports online showing the cards and the small dollar totals. One Reddit user, for example, reported receiving $25.47 on their virtual Mastercard.

The settlement anticipated that payments would be modest — the paperwork estimated roughly $20 per eligible incident as a baseline, with the theoretical top end varying depending on the total number of claims and administrative costs (documents discussed an estimated $20–$50 range per eligible device).

What to watch out for (scams included)

Because the payout arrives as an emailed notice with a virtual card, scammers will almost certainly try to piggyback on the format. That means two things:

1. Don’t hand over passwords. Legitimate settlement emails and the redemption portal do not require your Apple ID password; they usually ask for a notice ID or confirmation code included in the message to view your virtual card. If a link asks you to sign into your Apple account or give sensitive login details, treat it as suspicious.
2. Check the sender and the landing page before you click. The settlement has an official website where class members can check eligibility and payment details. If the URL or sender looks odd (misspellings; strange domains) don’t click — type the settlement URL into your browser directly or search for official notices from the settlement administrator.

Users on Apple’s own discussion boards and on Reddit who reported receiving the virtual card say the redemption process simply shows the card balance and gives options to spend online, add it to a wallet, or transfer it to another card, with no additional personal data required beyond the claim ID/code. Still: treat anything that asks for extra personal information as a red flag.

Why settle for $20 million?

From Apple’s perspective, a $20 million settlement is a cost of resolving a class action that could otherwise stretch into years of discovery and appeals. For plaintiffs, it’s an acknowledgement (and a payout) even as Apple continues to deny liability. The amount each person gets is small because the fund is being shared across potentially thousands of eligible claimants; settlements of this type typically prioritize speed and administrative closure over large individual awards.

If you think you’re owed money

If you remember reporting a swelling battery on an early Apple Watch, check the settlement website and your email (including spam/junk folders) for notices from the settlement administrator. If you find a legitimate notice, follow the administrator’s instructions — you should be able to view the prepaid Mastercard and redeem the balance without supplying extra personal credentials. If you’re unsure, contact the settlement administrator through the official site rather than replying to the email.

This isn’t the first time a hardware manufacturer has faced suits over battery behavior. Lithium-ion cells can, under certain conditions, swell as they age or fail; the question in these cases is often whether the design, testing or disclosure processes adequately anticipated that risk. For owners, the takeaway is straightforward: if you reported a swollen battery on an eligible model, keep an eye out this week for a small prepaid Mastercard arriving in your inbox — and if you get a similar-looking message but are unsure, verify via the settlement site before clicking anything.