Apple Inc.Apple is sued for alleged negligence over App Store security, risking legal liability and reputational damage.

Apple is being sued for alleged negligence over its App Store security after three users lost more than $1.8 million in a crypto scam. The lawsuit, filed Friday in the U.S. District Court of Northern California, claims the plaintiffs downloaded a fraudulent app called Sparrow Wallet, even though the official Sparrow Bitcoin wallet is not available on iOS. Plaintiff James Ramirez lost about $875,000, Christopher Ellis lost around $840,000, and Jalen Delgado lost roughly $120,000. The complaint accuses Apple of knowingly hosting fraudulent apps and failing to uphold its promise of a secure App Store, pointing to public criticism by Sparrow Bitcoin Wallet creator Craig Raw. The plaintiffs seek a jury trial, recovery of lost funds, and warnings about App Store risks, while Apple declined to comment but said it takes swift action against impersonating apps and noted it rejected over 371,000 copycat or misleading submissions in 2025.
Apple Inc.Apple is sued for alleged negligence over App Store security, risking legal liability and reputational damage.