Some people will sue for anything.  Now, it's for the fact that iPods can damage people's ears when played loudly.  From the article:

The iPod players are "inherently defective in design and are not sufficiently adorned with adequate warnings regarding the likelihood of hearing loss," according to the complaint, filed Tuesday in U.S. District Court in San Jose, Calif., on behalf of John Kiel Patterson of Louisiana. The suit, which Patterson wants certified as a class-action, seeks compensation for unspecified damages and upgrades that will make iPods safer. Patterson's suit said he bought an iPod last year, but does not specify whether he suffered hearing loss from the device.