At least three class-action lawsuits have been filed in the states of California, Maryland and Texas over alleged problems with iPhone 4 reception when the device is held in the hand a certain manner.
The complaint filed in Oakland, CA is the largest with 11 plaintiffs, while the other two each have one. Apple is being targeted for "three counts of products liability related to negligence, defects in design and break of implied warranty, international and negligent misrepresentation, fraud by concealment, unfair business practices, and more," according to a report from AppleInsider.
Furthermore, complaint out of California goes on to state that, "The iPhone 4 manifests design and manufacturing defects that were known to Defendants before it was released which were not displaced to consumers, namely, a connection problem caused by the iPhone 4's antenna configuration that makes it difficult or impossible to maintain a connection to AT&T's network."
AT&T is also mentioned in the suit, because it states that they helped Apple "design, manufacture and market" the iPhone 4.
In our experience, class-action suits are one of the most ridiculous parts of the legal system. Lawyers walk away with loads of money and the consumer usually gets some crappy compensation like a $5 rebate. They don't ever seem to accomplish much, unless you are a class-action layer. Heck, even the company being sued sometimes wins.