Apple cites paused securities fraud case in bid to halt Epic proceedings

Apple is citing a newly paused securities fraud lawsuit to support its request to pause further lower-court proceedings in its legal battle with Epic Games while the Supreme Court reviews part of the dispute. Here are the details.

Earlier this year, a proposed class action was filed on behalf of the City of Coral Springs Police Officers Pension Plan, accusing Apple of securities fraud.

The lawsuit alleges that Apple misled investors about whether the company was genuinely complying with the injunction in the Epic Games case, and whether the company would deliver its announced AI-powered Siri features.

Meanwhile, Apple has continued fighting a contempt finding in the Epic case. The Supreme Court is now reviewing whether Apple could be held in civil contempt for charging a commission on purchases made outside the App Store, when the 2021 injunction requiring it to allow external purchasing options did not explicitly prohibit such a fee.

Last week, Apple asked the lower court to pause proceedings that will determine what commission, if any, the company may charge on purchases made outside the App Store while the Supreme Court reviews the contempt finding.

Apple argues that the Supreme Court’s decision could affect the lower-court proceedings, an argument that Epic Games disputes.

As it turns out, Apple had made a similar request to pause the Coral Springs securities fraud case, since it also involves the Epic Games case.

Earlier today, Judge Noël Wise granted Apple’s request, which means the Coral Springs case will remain paused until the Supreme Court issues its decision on the civil contempt finding.

This, in turn, prompted Apple to submit Judge Wise’s decision in the Epic Games case, arguing that it supports its own request for Judge Yvonne Gonzalez Rogers to pause those proceedings as well.

From Apple’s petition to Judge Rogers:

[Apple] respectfully notifies this Court of a recent decision by the United States District Court for the Northern District of California in City of Coral Springs Police Officers Pension Plan v. Apple Inc. (…). This recent decision (…) is relevant to this Court’s analysis of Apple’s pending Motion to Stay Proceedings Pending Supreme Court Review.

Judge Rogers is currently reviewing Apple’s arguments for, and Epic’s arguments against, granting Apple’s motion to pause the case. Apple hopes Judge Wise’s decision will persuade Judge Rogers to follow suit.

Interestingly, in its reply to Epic’s opposition to stay the case, Apple also asked Judge Gonzalez Rogers to temporarily pause the proceedings even if she denies the stay request, allowing the company to ask the Ninth Circuit or the Supreme Court to keep the case on hold, while the Supreme Court separately reviews the contempt ruling.