iPhone maker Apple (AAPL) is caught up in a new lawsuit as an employee alleges that the company spies on personal iCloud accounts while also silencing workers. The lawsuit was filed in California’s Santa Clara County Superior Court and comes from Amar Bhakta, a digital advertising employee who’s been with Apple since 2020.
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In this lawsuit, Bhakta claims that Apple requires employees to install software that spies on their personal accounts. That includes workers’ iCloud accounts, as well as their emails, photos, health information, and smart home data. Finally, he alleges Apple limited what he could post online, such as the details about working conditions that were included on his LinkedIn account.
Apple has responded to these claims, denying any wrongdoing in the lawsuit. It also counters by arguing that it supports the rights of its employees to speak about their work.
Not Apple’s First Privacy Controversy
Apple was the subject of similar privacy complaints from a previous employee three years ago. At that time, Jacob Preston highlighted problems that were similar to those that Bhakta included in his lawsuit, such as the requirement that employees use their personal iCloud accounts for work.
Preston never went so far as to file a lawsuit against Apple. However, he did speak out about the issue as it mixed employees’ personal documents with Apple’s professional ones. The former Apple employee also noted this wasn’t an experience replicated at other companies.
Bhakta’s lawsuit against Apple could have large-reaching effects. If he wins the case, it might not just be monetary damages that Apple incurs. Instead, it’s possible the tech company would have to completely overhaul how it requires workers to use its services.
Is AAPL Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Apple is Moderate Buy based on 23 Buy, eight Hold, and two Sell ratings over the last three months. With that comes an average price target of $243.39, a high of $300, and a low of $184. This represents a potential upside of 1.73% for AAPL shares.