On December 30, 2009, Apple Inc won their appeal for iPod hearing loss lawsuit. The appeals court in San Francisco ruled that the plaintiffs failed to show that use of the iPod poses an unreasonable risk of noise-induced hearing loss. Senior Judge David Thompson wrote, "At most, the plaintiffs plead a potential risk of hearing loss not to themselves, but to other unidentified iPod users" (via Reuters). I believe that the lawsuit was originally filed in 2007.
At that time, Apple was under fire and decided to address issues concerning responsible use of their iPod. So, they launched a page on their website called Sound and Hearing and the option to set the maximum volume limit on an iPod. This can be especially useful for parents who want to protect their kids ears from exposure to loud sounds.
Just remember that exposure to any sound at extremely loud levels can cause damage to the hearing system.
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