Apple Uses Paused Fraud Case to Seek Epic Stay

Apple is pointing to a newly paused securities-fraud lawsuit as it asks a lower court to suspend further proceedings in its legal battle with Epic Games while the Supreme Court reviews part of the dispute.

Earlier this year, the City of Coral Springs Police Officers Pension Plan filed a proposed class action accusing Apple of misleading investors about two issues: whether it was genuinely complying with the injunction in the Epic case, and whether it would deliver its announced AI-powered Siri features.

Supreme Court review and Apple’s motion

Apple is separately challenging a contempt finding in the Epic case. The Supreme Court is reviewing whether Apple can be held in civil contempt for charging a commission on purchases made outside the App Store, given that the 2021 injunction requiring external purchasing options did not explicitly prohibit such a fee.

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Last week, Apple asked the lower court to pause proceedings that would determine what commission, if any, it can charge on those external purchases. Apple says the Supreme Court’s ruling could affect that process. Epic disputes the argument.

Apple had made a similar request in the Coral Springs securities-fraud case because it also involves the Epic litigation. Judge Noël Wise granted that request earlier today, leaving the securities case paused until the Supreme Court rules on the civil contempt issue.

Apple then submitted Judge Wise’s decision to Judge Yvonne Gonzalez Rogers, arguing that it supports pausing the Epic proceedings as well:

“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 weighing Apple’s request and Epic’s opposition. In its reply, Apple also asked for a temporary pause if the stay is denied, giving it time to seek relief from the Ninth Circuit or the Supreme Court while the high court reviews the contempt ruling.