Apple agrees to settle lawsuit over iTunes gift card scam
Apple has agreed to settle a lawsuit accusing the company of knowingly letting scammers exploit its gift cards, and keep stolen funds for itself. According to a filing on Wednesday in federal court in San Jose, California, Apple and the plaintiffs have agreed on material settle ment terms after working with a mediator. They are drafting a formal settle ment to be presented to U.S. District Judge Edward Davila for preliminary approval. Apple and lawyers for the plaintiffs did not immediately respond to requests for comment. The scam involves fraudsters who instill panic or urgency by insisting by phone that victims buy App Store and iTunes gift cards or Apple Store gift cards in order to pay for taxes, hospital and utility bills, bail and debt collection. Victims are then told to share the codes on the backs of the cards, despite a warning on the cards that reads: "Do not share your code with anyone you do not know." According to the complaint, Apple would typical...