Apple has reached an agreement to settle a lawsuit that accuses the company of benefiting from a scam that exploited its gift card system, according to a court filing. The plaintiffs, identified as Barrett et al, are currently working on a formal settlement proposal for a judge in San Jose, California. Although the filing did not disclose the specific amount of the settlement, it signifies progress in resolving the matter.
The lawsuit alleges that scammers would deceive individuals over the phone by persuading them to purchase Apple gift cards for various reasons such as paying taxes, debts, or bills. Victims were coerced into sharing the card codes, allowing the scammers to redeem the funds for themselves. As per the complaint, Apple would retain 30% of the stolen gift card funds. The lawsuit covers individuals who fell victim to the scam between 2015 and 2020 and have not yet received a full refund from Apple.
In response to a request for comment on Thursday, Apple did not immediately provide a statement.
As news of the lawsuit settlement emerged, Apple’s stock experienced a decline of 1.3%, trading at $181.88 as of recent Thursday trading. This drop marks the fourth consecutive day of decline for Apple shares, resulting in a roughly 6% decrease over the past four sessions. Analysts have downgraded the stock due to concerns about weakening iPhone sales.
- Brian Swint, email