According to the lawsuit, it claims that Apple is overstating the water-resistance capabilities of its iPhones. The lawsuit claims that despite the increasing resistance to the elements in newer iPhones, this is based on lab tests that use static and pure water, meaning that in the real world where the water might be not as clean or as still, it could result in the phones getting damaged and is not covered under warranty due to the water containing either chlorine or salt.
The lawsuit also says that Apple usually rejects warranty of devices whose contact indicator has turned red, despite the fact that the company advises customers to rinse iPhones that might have gotten wet from liquids like juice or coffee, but in a way that could cause the indicator to turn red and thus allow them to reject the warranty.
This would not be the first time that Apple has faced lawsuits over water-resistance claims, and we doubt that it will be the last, unless the company decides to revise its warranty and cover devices whose indicators might have turned red.