Apple has said it will extend warranties and hand out vouchers to people who have had battery problems in older generation iPod music players.
The legal action claimed false advertising
The proposed settlement could affect about two million iPod owners who bought theirs on or before 31 May 2004.
The move comes as Apple negotiates several legal cases brought against it from various owners in December 2003.
They said the iPod's battery did not last as long as Apple said and degraded over time compared to later models.
"This settlement helps me have confidence again that if I'm going to sink a bunch of money into their stuff, they'll do the right thing," said one of the people who took action against Apple, Andrew Westley.
A California Superior Court judge will now decide in August whether the proposed settlement from Apple is sufficient.
But Eric Gibbs, chief lawyer in the class action lawsuit was satisfied.
"The settlement easily satisfies final approval criteria," Mr Gibbs said. "It basically provides full relief to people who have had battery failure."
Only people living in the US are eligible under the terms of the deal.
In the settlement proposal, Apple said it would give vouchers and a year's extended service warranty to people with proof of purchase, whose iPod batteries did not last as long on a single charge as had been stated.
Those who experienced battery failure - where the iPod played for 50% or less than the advertised time of eight hours - should be able to claim a new iPod, have it fixed, or get a $50 (£28) credit for Apple products.
Most of those who will benefit from the settlement bought their players between April 2003 and July 2004.