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On behalf of plaintiff Timothy P. Smith, lawyers M. Van Smith and Damian R. Fernandez claim that iPhone customers have been damaged both by the exclusive deal with AT&T and by the 1.1.1 firmware update that made many iPhones inoperable. The suit claims that Apple's actions constitute an illegal trust in restraint of trade. Although the complaint is attempting to create a class action lawsuit, only one person, Smith, has signed up for the class thusfar.

"Apple forced plaintiff and the class members to pay substantially more for the iPhone and cell phone service than they would have paid in a competitive marketplace either for the iPhone or for AT&T's cell phone service," the complaint says.

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