Apple is being sued for alleged negligence over its App Store security measures. In a lawsuit filed Friday in the U.S. District Court for the Northern District of California, three plaintiffs claim they were tricked into downloading and installing a fraudulent crypto wallet app, causing them to collectively lose more than $1.8 million.
The lawsuit centers on Apple’s claim that it protects its App Store by reviewing apps before they’re published to protect users from fraudulent and malicious apps. In this case, the plaintiffs downloaded an app called Sparrow Wallet, even though the official Sparrow Bitcoin wallet is not available on iOS.
The plaintiffs transferred their Bitcoin to the fraudulent app, losing large amounts of the virtual currency, according to the complaint. Plaintiff James Ramirez lost approximately $875,000. Plaintiff Christopher Ellis lost approximately $840,000 and plaintiff Jalen Delgado lost approximately $120,000.
The complaint takes aim at one of Apple’s long-standing competitive arguments: that strict control over its App Store makes its platform more secure than those offered by competitors. The company has used this claim to prevent deregulation of the app ecosystem, including third-party app stores and sideloading.
“Through an ongoing marketing campaign, Apple has positioned itself, its products and services, as offering a level of security and reliability superior to that of any competing technology company,” the new filing says. “This includes assurances about the security of apps distributed through its App Store. By maintaining sole control over the apps allowed on Apple devices, Apple has structured its platform to ensure that consumers are fully dependent on its promise of security and reliability,” it said.
The complaint also accuses Apple of knowingly hosting fraudulent apps, pointing to public criticism from Sparrow Bitcoin Wallet creator Craig Raw, who said Apple had allowed fake Sparrow Wallet apps to remain in the App Store.
The three are seeking a jury trial and seeking to recover lost money and other damages. They also want Apple to provide warnings and disclosures about the dangers of the App Store.
Apple declined to comment on the lawsuit. The company did stand behind its security measures, telling TechCrunch that apps that impersonate others are a violation of its guidelines and it is taking immediate steps to remove them. Apple added that there are currently no copies of Sparrow Wallet on the App Store.
The company also pointed out its latest analysis of its ecosystem, which found that in 2025 it rejected more than 371,000 submissions that copied other apps, were spammy or otherwise misled users.
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