Apple (AAPL) is back in the hot seat, facing a narrowed privacy lawsuit over accusations that it collected personal data from iPhone, iPad, and Apple Watch users without consent. The federal lawsuit claims Apple violated user agreements and privacy laws by collecting data through its apps, even when users had disabled tracking settings, according to Reuters. While a judge dismissed many of the claims, Apple still has to answer for its use of the “Share [Device] Analytics” setting.
Judge Narrows but Allows Some Claims to Proceed
U.S. District Judge Edward Davila in San Jose dismissed most of the claims related to Apple’s “Allow Apps to Request to Track” setting. The judge noted that Apple clearly stated this setting only applied to third-party apps and websites. But some claims still stand, as users argue they withdrew consent by turning off the “Share [Device] Analytics” option. Apple’s own disclosure states that disabling this feature should prevent data sharing, making it a more plausible claim for users.
Apple Stays Quiet on the Matter
While Apple has justified its data collection as a way to “improve its products and services,” both Apple and its legal team have remained tight-lipped since the judge’s ruling. The lawsuit continues, adding Apple to a growing list of tech giants facing scrutiny over privacy practices.
Interestingly, looking at the TipRanks Risk Analysis tool for Apple, we can see that Legal & Regulatory risks contribute 21% to Apple’s total risk. This is a substantial figure, and investors should keep a close eye on it.
Is Apple a Buy, Sell or Hold?
Despite the risks, analysts are still bullish on Apple stock – but with caution. The Street has given Apple a Moderate Buy rating based on 24 Buys, nine Holds and one Sell. The average AAPL price target of $248.07 implies an upside potential of 9%.
