Yes it is a known issue by the manufacturer. They don't admit it until you've tried all of their phone support troubleshooting while under warranty. The digitizer craps out. Mine went just a few weeks outside of warranty and was a little worse than pulling teeth but finally convinced them to send me another one. I haven't done enough research yet to see if anyone has spent the tech time to fix issue without replacing the digitizer. But so far that's the best solution. Here is the link to the [product|IF368-004-5|digitizer assembly] ifixit.com sells.
Looks like low on stock though.