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Apple's $1.8 Million Settlement for Gift Card Fraud Claims

Eligible for the Apple gift card settlement? Learn who qualifies for the $1.8 million payout and how to claim your compensation for redemption fraud.

Apple's $1.8 Million Settlement for Gift Card Fraud Claims
Updated on
Published on

Settlement Terms

  • Status:
    Closed
  • Award:
    Up to the full face value of the card(s)
  • Is Proof Required?
    Yes
  • Claim Deadline:
    January 8, 2024
    Not Set
  • Days Left to File Claim:
    0
  • Settlement Amount:
    $1,800,000
  • Final Approval:
Settlement summaries by Claim Depot are written for people who might be eligible to claim class action settlement awards. Our goal is to provide the reader all relevant information about the settlement so they can claim their lawsuit funds. Claim Depot uses artificial intelligence (AI) to extract data from the vast amounts of text on the Official Settlement Website and in the court documents. Then, our writers, who are licensed attorneys, write the summary in plain English so the greater public can better understand their rights.

TL;DR

Who Benefits?: Individuals who purchased an App Store & iTunes Gift Card between specified dates and were victims of redemption fraud.

How much can I get?: Compensation equal to the face value of the unredeemed gift cards.


Understanding the $1.8 Million Apple Settlement

The settlement arises from allegations that Apple misrepresented the value and security of its App Store & iTunes Gift Cards, leading to consumer losses due to fraudulent redemption by unknown third parties. Apple has agreed to a $1.8 million settlement, although it denies any wrongdoing or liability.


The settlement aims to compensate those who purchased gift cards but were unable to use them as intended due to fraud. The settlement does not only provide monetary compensation but also represents a resolution to the underlying claims without further litigation.


Important Dates

  • Fairness Hearing: January 17, 2024
  • Deadline to File a Claim: January 8, 2024


Identifying Eligible Class Members

Eligibility for the settlement is specific and includes consumers nationwide who purchased App Store & iTunes Gift Cards and were defrauded before they could redeem their cards. There is also a subclass for California residents with a distinct purchase date range.


  • Nationwide Class: Purchases made in the United States from March 2018 to July 2020
  • California Subclass: Purchases made in California from May 2017 to February 2018


Class Members must not have received a refund or replacement for the fraudulently redeemed cards. Exclusions apply to Apple's affiliates, insiders, and those involved in the case's adjudication.


Detailed Award Eligibility

Class Members are entitled to claim an amount equal to the face value of the compromised gift cards. The final amount each Class Member receives may be adjusted based on the total number of valid claims submitted.


  • Nationwide Class: Full face value of the fraudulently redeemed gift cards
  • California Subclass: Full face value of the fraudulently redeemed gift cards


The Subject of the Settlement

The products at the center of this settlement are the App Store & iTunes Gift Cards. These cards were allegedly subject to fraudulent redemption, leading to financial losses for the purchasers.


Is Proof Required to Claim the Reward?

Yes, proof of purchase and a statement attesting to the fraud are required to submit a claim.


The Basis for the Class Action Settlement

The lawsuit claims that Apple misrepresented the value and security of its gift cards, leading to consumer harm. Apple denies these claims but has agreed to settle to avoid the uncertainties and expenses associated with ongoing litigation.


The next steps for affected individuals are to submit a claim by the deadline, opt out if they wish to retain their right to sue independently, or object to the settlement if they have concerns about its terms.

Case Facts

  • Case Number:
  • Filing Date:
  • Jurisdiction:
    U.S. District Court for the Southern District of California
  • State:
  • Court:
  • Plaintiff:
  • Defendant:
    Apple Inc.
  • Plaintiff Firm:
    James R. Hawkins, Samantha A. Smith, James Hawkins APLC,
  • Claims Admin:
    CPT Group, Inc. 50 Corporate Park Irvine, CA 92606 1-888-617-2646 ShayGiftCardSettlement@cptgroup.com
  • Defendant Firm:
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Kasia Nelson
Kasia Nelson
Reporter and Licensed Attorney
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Settlement Agreement

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Settlement Agreement

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