A US judge has ruled that a lawsuit against Apple and AT&T can go ahead, despite Apple"s request to have the suit dismissed. The $1.2m suit alleges that Apple and AT&T knowingly sabotaged unlocked iPhone handsets with the release of the iPhone 1.1.1 software update. The suit claims that the companies violated US trade and copyright laws which had allowed users to alter their phones. The plaintiffs are suing both companies for violating federal antitrust laws.