A lawsuit filed at the Superior Court in San Diego claims that Apple used the iOS4 update to effectively brick older handsets in an attempt to sell newer iPhones.
Here's the meat of the complaint:
The true fact of the matter, as verifiable by information technology experts, is that the iOS 4 is a substantial 'downgrade' for earlier iPhone devices and renders many of them virtually useless iBricks. Nonetheless, in reasonable and detrimental reliance upon Apple's false representations, false statements and false claims of full compatibility, thousands upon thousands of iPhone 3 users were intentionally misled into installing iOS 4 on their devices.
Basically, once users installed iOS4 onto their iPhone 3G handsets there was no way for most customers to effectively downgrade the OS, leaving customers with a handset that was virtually unusable. Apple's support forums are full of discussion relating to this issue.
The plaintiff, Bianca Wofford, is seeking reimbursement for every plaintiff the cost of the iPhone, plus an additional $5,000 in damages.