Apple Escapes Pretend ‘Toast Plus’ Cryptocurrency Pockets App Swimsuit


Apple Inc. escaped a proposed class motion introduced over a fraudulent cryptocurrency pockets app that was obtainable for obtain on its App Retailer, after a federal decide in San Francisco dominated the tech firm’s platform is shielded by Part 230 of the Communications Decency Act.

Hadona Diep sued Apple in Maryland federal courtroom in September, accusing the corporate of internet hosting “Toast Plus,” a fraudulent cell utility for a crypto pockets that had an identical identify and comparable or an identical emblem to its authentic counterpart. When Diep checked its standing, she discovered that the lookalike app had deleted her account, and that she’d misplaced her deposited crypto funds.

Diep alleges she sustained greater than $5,000 in damages because of Apple internet hosting the fraudulent app. Her co-plaintiff Ryumei Nagao claims that he misplaced $500,000. The swimsuit was transferred in December to the Northern District of California.

Choose Phyllis J. Hamilton of the US District Court docket for the Northern District of California agreed with Apple that it could actually’t be held chargeable for the faux app below Part 230 of the act, as a result of it’s thought of a writer of the content material, not a creator.

Apple qualifies as an interactive laptop service supplier and printed data supplied by one other content material supplier, assembly all the necessities to be immune below Part 230, Hamilton mentioned in her Sept. 2 ruling.

The decide additionally agreed with Apple that Diep didn’t efficiently plead claims below each California and Maryland’s Shopper Privateness Acts as a result of she didn’t allege particular particulars of the time, place, and content material of the alleged false representations.

Diep’s claims additionally have to be dismissed as a result of below its Phrases and Situations, the corporate will not be chargeable for damages arising out of or associated to the usage of third-party apps, Hamilton mentioned.

Diep and Nagao are represented by Adelphi Legislation, Edward Nelson Griffin of Silver Spring, MD, and Conn Legislation PC. Apple is represented by DLA Piper LLP.

The case is Diep v. Apple Inc., N.D. Cal., No. 4:21-cv-10063, 9/2/22.


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