Apple is agreeing to pay $53 million to settle a class action accusing the company of failing to honor warranties on iPhones and iPod Touches, according to an agreement obtained today by Wired.

According to the plaintiffs’ complaints, Apple refused to honor warranties on some iPhone, iPhone 3G, iPhone 3GS, and first, second and third-gen iPod touches if a white indicator tape embedded within the device was discolored, indicating water contact. 3M, the manufacturer of the tape, said humidity, not direct contact with water, could cause the tape to change color.