Apple Inc. faces significant legal pressure as a new lawsuit questions its approach to combating illicit material on its services. The Attorney General of West Virginia has filed a complaint alleging the tech giant is not doing enough to address child sexual abuse material (CSAM) within its iCloud storage platform. The case highlights a stark reporting discrepancy compared to peers, potentially signaling the start of broader legal scrutiny.
Core Allegations and Reporting Disparity
Filed on Thursday by Attorney General John McCuskey, the lawsuit centers on Apple’s purported failure to protect children using its cloud services. The complaint presents compelling data: in 2023, Apple reported merely 267 suspected instances to the National Center for Missing & Exploited Children. This figure is dwarfed by reports from other major platforms, with Google submitting 1.47 million and Meta providing over 30 million.
The legal action references internal company documents from 2020, criticizing Apple’s choice to abandon its proposed “NeuralHash” scanning tool. Designed to detect problematic content directly on user devices, the system was ultimately shelved following substantial backlash from privacy advocates.
Apple defends its position by emphasizing user privacy, arguing that client-side scanning could create vulnerabilities enabling government mass surveillance. The company points to alternative protective measures like the “Communication Safety” feature within iMessage, which alerts parents when children receive or attempt to send potentially sensitive content.
Should investors sell immediately? Or is it worth buying Apple?
Strategic Moves Amidst Scrutiny
Despite this legal headwind, Apple continues to advance its core business initiatives. The company announced a partnership with EverPass Media on Friday. This deal will expand the distribution of live sports content from Apple TV—including Major League Soccer and “Friday Night Baseball”—to commercial venues such as bars, hotels, and restaurants. The move is aimed at maximizing returns on Apple’s multi-billion dollar investments in sports broadcasting rights.
Concurrently, Apple is trialing an AI-powered feature for Apple Music in the iOS 26.4 beta. Dubbed “Playlist Playground,” this tool allows users to generate custom playlists through text prompts, positioning it as a competitive response to similar functionalities from Spotify and YouTube Music.
Investor Sentiment and Market Performance
Apple’s shares closed Thursday’s trading session at $260.58, marking a decline of 1.43%. While the average analyst price target sits near $299, concerns regarding regulatory risks contribute to ongoing investor uncertainty. Notably, Berkshire Hathaway, the largest institutional shareholder, trimmed its stake in Apple by approximately four percent during the fourth quarter of 2025—a development market observers are interpreting in various ways.
The coming weeks will clarify the seriousness of the West Virginia lawsuit. Should additional states pursue similar legal action, Apple may face increased pressure to revise its current stance, with potential implications for its foundational commitment to user data security.
Ad
Apple Stock: Buy or Sell?! New Apple Analysis from February 20 delivers the answer:
The latest Apple figures speak for themselves: Urgent action needed for Apple investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 20.
Apple: Buy or sell? Read more here...
