Uh, how do you think CRTs work? They show you a green, red, and blue dot each of which has 256 possible states of brightness, which are then interpreted by the human eye as colors. The fact that there are 16.7 million possible states for each three-dot pixel to be doesn't actually mean there are 16.7 million colors. That would require that every pixel be capable of emitting light in 16.7 million different wavelengths, not combinations of three particular wavelengths.
Any color not red, green, or blue perceived from a CRT pixel is an optical illusion to begin with. Dithering is simply using several pixels to create the illusion. Like gnasher said, two 6-bit RGB pixels can, using dithering, mathematically produce over two million colors. Therefore, Apple's (or any LCD manufacturer's) claim of "millions" of colors is just as valid as a CRT manufacturers claim of 16.7 million colors. According to the real-world physical definition of color, meaning light wavelength, both are really only capable of THREE colors.
This law suit should be thrown out of court.