Apple sued for fraud over iCloud Private Relay flaw that leaks users’ real IP addresses
Apple is named in a class action lawsuit alleging fraud and false advertising over an iCloud Private Relay vulnerability, according to the Clarkson Law Firm and 9to5Mac. Researchers say the feature can leak users’ real IP addresses when websites claim passkey support. The suit targets iCloud+ marketing about privacy and seeks relief for subscribers.
How this was made

The 30-second read
Why it matters
The complaint alleges that when websites support or even claim passkeys, the device makes requests outside the browser that bypass Private Relay, potentially exposing real IP addresses and undermining Apple’s marketing of iCloud+ privacy.
Market read
Traders may reprice Apple’s litigation risk around privacy marketing claims, especially if the passkey bypass is substantiated or leads to settlement or remediation.
What to watch
The article does not include court status, specific technical findings from Apple, or any regulator involvement, which are key for estimating downside severity.
Background
iCloud Private Relay is positioned as a Safari privacy tool that should mask users’ real IP addresses by routing traffic through relays.
Ticker impact
Apple is named in a new class action alleging fraud and misrepresentation tied to iCloud Private Relay failing to hide real IPs when passkeys are used.
Near-term risk is headline-driven and litigation-cost related; material price impact depends on settlement size and any regulator or court findings.
The article is a fresh filing claim (new legal risk) but provides no damages, court ruling, or regulatory action details.
Market effects
Highlights privacy feature implementation risk for consumer tech and could increase scrutiny of identity and passkey flows.
Primarily US litigation risk, but can affect global Apple sentiment and privacy-related product perception.
Could resonate with other privacy tooling providers if similar passkey bypass behaviors are found.
Counterpoint
Apple may argue the feature works as designed for typical browsing flows and that the alleged edge case does not justify fraud claims.
Key entities
- companyApple
Defendant in a class action alleging fraud, false advertising, and misrepresentation over iCloud Private Relay behavior tied to passkeys.
- law_firmClarkson Law Firm
Law firm that filed the class action and previously secured a $250 million settlement related to Apple Intelligence and Siri delays, per the article.
- product_featureiCloud Private Relay
Apple privacy feature intended to hide real IP addresses; alleged to fail in passkey-related scenarios.




