An Ontario court has approved a C$1.25 million settlement concerning Canadians who lost Apple gift-card value to third-party scammers, according to the official claims administrator. The approval dates to September 16, 2026; the administrator has scheduled claims to open on October 23. [S01]
The case, Michael Ferracci v Apple Inc., Apple Value Services LLC and Apple Canada Inc., concerns losses after consumers gave redemption codes to strangers who obtained them deceptively. Its earlier class notice described allegations that Apple could track or reverse transfers and flag suspicious activity. Those allegations were not proven, and Apple denies wrongdoing and responsibility for providing refunds. [S03]
Fraud-report records determine the allocation
The gross settlement includes legal fees, taxes and administration costs. Sotos LLP represents the class. The administrator's FAQ says the court approved C$250,000 in legal fees, plus taxes and disbursements. Payments to eligible claimants will come from the remaining fund, rather than the entire headline amount. [S02]
Seventy-five per cent of that remaining money is reserved for eligible claimants whose report to Apple can be verified against Apple's information. Their compensation will be proportional to eligible losses. The other 25% will be shared equally among other eligible claimants. Both groups must meet the scheme's eligibility and fraud-reporting requirements. [S02]
Allocation of the net settlement fund
These shares apply after approved deductions, not to the full C$1.25 million headline amount.
% of net fund
Tap or hover for details. All values are also available in the data table.
Source
Allocation rules, not payments already made or claimant shares. Both groups must establish eligibility and reported fraud; individual amounts depend on approved claims.
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| Category | Reported value |
|---|---|
| Eligible contact-class claims | 75 % of net fund |
| Other eligible non-contact claims | 25 % of net fund |
No individual payment has been fixed. The eventual amounts depend on the number and value of approved claims. The distinction between the two groups makes the existence of a verifiable report to the issuer consequential to how recovery is calculated. [S02]
A defined class and a future claims period
The administrator identifies eligible purchases as iTunes, App Store and Apple Music gift cards bought in Canada between January 1, 2016 and September 16, 2026, where deceptive code requests led to losses that were not fully refunded or compensated. The claims period is scheduled to run from October 23, 2026 to February 20, 2027. [S01]
The earlier notice stage is already documented. The September 16 endorsement records two valid opt-outs, no written objections and two written comments following notice and the August 31 opt-out deadline. Those counts describe participation in the court process before compensation claims open. They are not claim volumes, an approval poll or a basis for estimating the size of the class. [S05]
Responses recorded during the settlement notice stage
The court reported these procedural counts before the compensation-claims period.
recorded responses
Tap or hover for details. All values are also available in the data table.
Source
Notice responses are not compensation claims or a representative satisfaction measure. No class-size denominator or claim take-up rate is inferred; settlement does not establish the underlying allegations.
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| Category | Reported value |
|---|---|
| Valid opt-outs | 2 recorded responses |
| Written objections | 0 recorded responses |
| Written comments | 2 recorded responses |
The settlement creates a compensation process for that defined class. Its terms do not establish liability for the underlying scams or promise full reimbursement of every reported loss. [S02][S03]
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Daniel Brooks
Daniel Brooks covers payment networks, financial technology, payment security, gift card fraud and PCI DSS for Gift Card News.