SAN FRANCISCO (Legal Newsline) - A class action lawsuit on behalf of victims of a gift card scam says Google wrongly kept their money.
Google and its parent company Alphabet, Inc., along with Google Arizona LLC and Google Payment Corp., are facing a class-action lawsuit filed March 5 by plaintiff Judy May on behalf of all others similarly situated.
The case, filed in the United States District Court for the Northern District of California, alleges that Google knowingly retained millions of dollars from victims of gift card scams who purchased Google Play gift cards.
The complaint states that despite being informed about the theft and provided with information to identify and return the stolen funds, Google chose to keep the money. The tech giant is also accused of perpetuating the theft through practices designed to make it easier for it to retain the stolen funds.
The plaintiff further alleges that Google plays a direct role in these scams by allowing gift cards involved in fraud to be redeemed and spent on digital currency or products which scammers can resell for currency.
The company allegedly profits from this by depositing a percentage of the stolen money into Google Play Developer accounts while retaining a commission for itself.
May claims she bought $1,000 worth of Google Play gift cards as a result of such a scam in April 2021. Despite reporting the scam to Google, she received no refund or reimbursement, she says.
Several firms represent the plaintiff with Hal Cunningham of Scott + Scott signing the complaint.