By Jonathan Stempel

(Reuters) – A federal judge dismissed a proposed class action lawsuit accusing Google of illegally profiting from Google Play gift card scams by refusing to refund millions of dollars stolen from victims.

In a late Monday (NASDAQ:MNDY) decision, U.S. District Judge Beth Labson Freeman stated that the plaintiff, Judy May, lost money because scammers induced her to buy gift cards, and failed to show that Google caused her losses or knew it was receiving stolen funds.

The San Jose, California-based judge also mentioned that Google was not liable for keeping 15% to 30% commissions on purchases made with the gift cards by scammers, as Google's conduct was unrelated to the original fraud.

May reported losing $1,000 in April 2021 when a scammer posing as a relative instructed her to contact a supposed government agent, who claimed she was eligible for federal grant money if she bought Google Play gift cards.

The Brownsville, Indiana resident stated she provided the codes on the back of the cards to cover supposed upfront costs, but the scammers used them for purchases instead.

May argued that she would not have bought the cards had Google provided warnings on the packaging about scams, indicating that anyone requesting payment with the cards was likely a scammer.

Lawyers for May did not respond immediately to requests for comment. Google, a unit of Alphabet (NASDAQ:GOOGL), also did not respond to similar inquiries promptly.

Freeman noted that May could attempt to refile her lawsuit, but dismissed a claim for triple damages definitively. Alphabet is based in Mountain View, California.

In 2023, Americans lost $217 million in gift card or reload card fraud, according to the Federal Trade Commission.

The actual losses are likely much higher since the data represents only reported cases. Citing FTC data from 2021, May indicated that Google Play cards account for approximately 20% of gift card scams.

The case is May v Google LLC et al, U.S. District Court, Northern District of California, No. 24-01314.