Apple, often regarded as a champion of user privacy, has agreed to pay $95 million to settle a five-year-old class action lawsuit accusing the company of eavesdropping on users through its Siri virtual assistant. The proposed settlement was filed on Tuesday in a federal court in Oakland, California, and awaits approval from US District Judge Jeffrey White.
Allegations Against Apple
The lawsuit alleged that Siri recorded conversations without being activated by the trigger phrase, “Hey, Siri,” and that some recordings were shared with advertisers. Plaintiffs claimed this violated user privacy and allowed Apple to target advertising more effectively.
In 2019, an investigation by The Guardian revealed that Apple contractors regularly overheard confidential information, such as medical details and private conversations, as part of Siri’s quality control process. This practice was reportedly not disclosed in Apple’s privacy documentation.
Apple’s Position
While agreeing to settle, Apple denied any wrongdoing. The Cupertino-based company has yet to comment on the settlement or the allegations.
Settlement Details
The settlement fund includes:
- $95 million for class members.
- Up to $28.5 million for plaintiffs’ lawyers in fees.
- An additional $1.1 million for expenses related to the case.
A court hearing has been proposed for February 14, 2025, to review the settlement terms.
Apple’s Financial Context
The settlement follows Apple’s quarterly revenue announcement on October 31, 2024, where the company reported $94.9 billion in revenue—a 6% increase year over year. Apple’s current market capitalization stands at $3.68 trillion, reinforcing its position as the world’s most valuable company.
Impact on Apple’s Privacy Reputation
This lawsuit raises questions about Apple’s privacy practices, particularly as the company markets itself as a leader in protecting user data. The settlement may prompt scrutiny over how tech companies handle user data and their disclosures to consumers.
