Apple faces $120 million lawsuit over detection of child sexual abuse material on iCloud — Tech giants say they are “urgent and aggressive in innovating” – Alphabet (NASDAQ:GOOG), Apple (NASDAQ:AAPL)

apple inc. AAPL On Saturday, the company faced a $1.2 billion lawsuit filed in U.S. District Court in Northern California over the termination of its child sexual abuse material detection capabilities.

What happened: According to the New York Times, the plaintiff, a pseudonymous 27-year-old woman, claimed that Apple violated its promise to protect victims like her.

She claims her abuse images were stored in iCloudApple’s decision allowed the material to be shared widely. The lawsuit seeks to change Apple’s practices and provide compensation to up to 2,680 victims.

Unlike competitors, e.g. alphabet inc. Google Google Google and Meta Platform, Inc. Mehta FacebookApple has historically reported far fewer incidents of misuse of materials, citing its commitment to user privacy.

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However, child safety advocates criticized the company for failing to take stronger action to curb the spread of such content.

In a related case in August, attorneys for a 9-year-old victim sued Apple in North Carolina, alleging that a stranger sent her CSAM via iCloud. Apple has filed a motion to dismiss, citing Section 230 protections. However, recent court rulings may challenge Apple’s defense.

Apple spokesperson Fred Sainz It said the company is committed to combating child sexual abuse content while maintaining user privacy. “We are urgently and aggressively innovating to combat these crimes without compromising the security and privacy of all our users.”

Apple did not immediately respond to Benzinga’s request for comment.

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Why it’s important: The lawsuit stems from Apple’s decision in 2022 to abandon plans to scan iCloud images for CSAM.

The initiative, initially announced in 2021, aims to detect CSAM using an on-device hashtag system.

Last September, Apple explained its decision to abandon the CSAM testing program, citing privacy concerns and potential unintended consequences.

In early January of this year, technology leaders included Mark Zuckerberg and others testified at a Senate hearing on child safety, showing the industry’s growing concern about the issue. Meanwhile, Apple faces other legal challenges, such as a lawsuit from an employee alleging privacy violations.

In October, Apple reported fourth-quarter revenue of $94.9 billion, exceeding analysts’ expectations of $94.56 billion.

Price Action: Apple shares fell 0.082% to close at $242.84 on Friday, and fell another 0.22% to $242.30 in after-hours trading. According to data from Benzinga Pro, Apple shares have risen 30.81% so far this year, slightly higher than the 30.7% gain of the Nasdaq 100 index during the same period.

Based on assessments by 31 analysts, Apple’s consensus price target is $242.26, with the highest target set by Wedbush on November 29 being $300. The potential upside is 8.4%.

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Disclaimer: This content is generated in part with the help of artificial intelligence tools, and is reviewed and published by Benzinga editors.