KIRO in Seattle has a piece about flaming iPods and how Apple is trying to keep them a secret:
It’s an investigation that Apple has apparently been trying to keep out of the public eye. It took more than 7-months for KIRO 7 Consumer Investigator Amy Clancy to get her hands on documents concerning Apple’s iPods from the Consumer Product Safety Commission because Apple’s lawyers filed exemption after exemption. In the end, the CPSC released more than 800 pages which reveal, for the very first time, a comprehensive look that shows, on a number of occasions, iPods have suddenly burst into flames, started to smoke, and even burned their owners. Owners like Jamie Balderas of Arlington, Washington, who contacted KIRO 7 in November of 2008. “At first I thought, how in the heck did I get burned? Right there?” she told Clancy, while pointing to a penny-sized, round burn on her chest. “Then I remembered that I had my iPod right there.” Balderas says her brand new iPod Shuffle overheated while she was running days before, leaving her with a small burn right where the iPod was clipped to her shirt, next to her skin. “My skin started burning really bad, like it was a bee sting that wouldn’t stop.”
http://www.kirotv.com/money/20089894/detail.htmlI would expect that anything electronic, especially anything with rechargeable batteries, could possibly overheat and burn you. As to whether Apple is involved in a coverup I don't know!