What you should know
- Apple has been facing numerous lawsuits and legal issues at the end of 2023 and the beginning of 2024, including a drama surrounding the Apple Watch Series 9 and a lawsuit over its Family Sharing feature.
- The company has agreed to settle a lawsuit accusing it of knowingly allowing scammers to exploit its gift cards and keep stolen money. The lawsuit claimed that Apple would deposit only 70% of the stolen funds into fraudsters’ bank accounts, and keep 30% for itself as a “commission.”
- The scam involved fraudsters insisting victims buy App Store and iTunes gift cards or Apple Store gift cards to pay for various expenses, then share the codes on the backs of the cards. Despite a warning on the cards not to share the code with unknown people, victims lost “hundreds of millions of dollars” in the scam.
- Victims who bought gift cards redeemable on iTunes or the App Store and provided codes to fraudsters between 2015 through July 31, 2020, but did not receive funds from Apple, may be eligible for compensation as a result of this lawsuit.
Full Story
Some folks reckon the close of 2023 and the dawn of 2024 ain’t exactly Apple’s finest hour. Not sure if a black cat’s been strutting across Apple’s path lately, but they’ve sure had a parade of lawyers, prosecutors, and lawsuits knocking at their door.
You must’ve heard about the Apple Watch Series 9 drama, right? It’s been the talk of the town since December 2023. Then there’s the whole thing with the Cupertino giant settling a lawsuit over its Family Sharing feature for a cool $25 million. If you’re eligible for a refund, you might be wondering how to get your hands on some of that cash.
But wait, there’s more. A report claimed that Apple sold fewer flagship iPhones in 2023 than in 2022. Now, there’s even more lawsuit action on the horizon.
According to Reuters, Apple has decided to settle a lawsuit. The accusation? That they knowingly let scammers exploit their gift cards and pocket the stolen money. Sounds pretty bad, huh? Apple tried to get the lawsuit dismissed, but US District Judge Edward Davila wasn’t having it. He said the plaintiffs had enough evidence to suggest that Apple’s attempt to deny liability, even after victims claimed they were scammed, was “unconscionable”.
It seems both parties have now agreed on settlements in a federal court in San Jose, California. They’re currently drafting a formal settlement to present to Judge Davila for approval. The scam in question involved fraudsters creating a sense of panic or urgency. They’d insist that victims buy App Store, iTunes, or Apple Store gift cards to pay for things like taxes, hospital bills, bail, and debt collection.
Victims were then told to share the codes on the backs of the cards. This is despite a warning on the cards that clearly states: “Do not share your code with anyone you do not know.” According to the complaint, Apple would typically only deposit 70% of the stolen funds into the fraudsters’ bank accounts. The remaining 30%? Apple would keep it as a “commission” for knowingly converting stolen codes into dollars.
The complaint suggests victims likely lost “hundreds of millions of dollars” in the scam, as reported by Reuters. If you bought gift cards redeemable on iTunes or the App Store between 2015 and July 31, 2020, and provided codes to fraudsters without receiving funds from Apple, this lawsuit might be your golden ticket to getting some money back.
