Nov 4, 2010 11:50 GMT  ·  By

In a lawsuit filed last week, a California Woman is accusing Apple of engaging in "unsavory, dishonest and deceptive business practices" by offering the iOS 4 update to iPhone 3G users labeling it as an “upgrade”, whereas the software update actually downgraded the functionality of iPhone 3G handsets, court documents say.

According to Bianca Wofford’s lawsuit, the iOS 4 release in June rendered her iPhone 3G "virtually unusable". She claims that the new operating system degraded the phone's performance, a scenario depicted by many iPhone 3G users on various forums, including Apple’s own Discussions board.

“Plaintiff estimates that after iOS 4 installation, she receives about 20% of the functionality of the device as it behaved before with the earlier iOS 3.x system software and firmware,” Wofford's complaint says. “The true fact of the matter ... is that the iOS 4 is a substantial 'downgrade' for earlier iPhone devices and renders many of them virtually useless 'iBricks.'”

The lawsuit also claims Apple pushed the software update onto unwary customers in order to force them into an upgrade to the iPhone 4, the company’s latest version of the handset.

"Plaintiff is informed and believes that this whole situation was created to be consumer Catch-22 by Apple in order for the company to promote sales of its just released iPhone 4 and to cause consumers to simply abandon the earlier 3G and 3GS platforms," the suit says, according to Wired.

"After all, what better way to underhandedly create incentive to purchase a newer product than by essentially rendering an earlier product useless by the false promise of a software 'upgrade.'”

Bianca Wofford of San Diego County, Calif. has asked a judge to grant her case class-action status, which would let any California resident join the suit, if awarded.

During a September 1 media event, Apple CEO Steve Jobs noted that the issues encountered by iPhone 3G users would be resolved in iOS 4.1.

Following the release of the update, users started reporting improved behavior of their handsets, but still not a satisfying experience.