Tag Archives: Company Legal & Law Matters

IBM settles its DEI lawsuit with the DOJ for $17 million

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IBM has agreed to settle the US Department of Justice's accusations that the company violated civil rights laws with its DEI practices. According to a press release from the DOJ, IBM will pay more than $17 million to resolve allegations of taking "race, color, national origin, or sex" into account when making employment decisions. This settlement is the latest development in a longstanding effort from the Trump administration to end DEI programs, which was kick-started from an executive order in early 2025.

IBM denied any wrongdoing and said the settlement wasn't an admission of liability, while the US government said this conclusion wasn't a concession that its claims weren't well founded, according to the settlement agreement. According to the DOJ, IBM had violated the Civil Rights Act of 1964 with practices that included altering "interview criteria based on race or sex," developing "race and sex demographic goals for business units," using "a diversity modifier that tied bonus compensation to achieving demographic targets" and more.

An IBM spokesperson told Engadget in an email that the company "is pleased to have resolved this matter," adding that "our workforce strategy is driven by a single principle: having the right people with the right skills that our clients depend on.”

According to Todd Blanche, the agency's acting attorney general, this action is one of the first resolutions to come out of the Civil Rights Fraud Initiative, which was launched in May 2025. IBM isn't the only company to alter its policies, with both T-Mobile and Meta agreeing to put an end to its DEI initiatives last year.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/ibm-settles-its-dei-lawsuit-with-the-doj-for-17-million-153749285.html?src=rss

Apple is closing three US stores, including the first to unionize

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Apple is closing three of its retail stores this summer, including its first location to unionize. The tech company said it plans to permanently close Apple Store in Trumbull, CT, Escondito, CA, and Towson, MD. The Apple Store location in Towson, was the first where unionized workers and Apple reached a contract agreement back in 2024. 

MacRumors published a statement from Apple confirming the closures. The company credited noting "the departure of several retailers and declining conditions" at the shopping centers where this trio of stores are housed as the reason for ending operations. "Our team members at Trumbull and North County will continue their roles at nearby Apple Retail stores," the statement reads. "Towson employees will be eligible to apply for open roles at Apple in accordance with the collective bargaining agreement." We reached out to the company for additional comment, and were sent the same statement. 

The International Association of Machinists and Aerospace Workers, which leads the union the Towson workers had joined, released a statement about the closure. "Apple’s claim that the collective bargaining agreement prevents relocation is simply false and raises serious concerns that this closure is a cynical attempt to bust the union," the organization said. "We are exploring all legal options and will work with elected officials and allies to hold Apple accountable."

This article originally appeared on Engadget at https://www.engadget.com/big-tech/apple-is-closing-three-us-stores-including-the-first-to-unionize-225941912.html?src=rss

Apple is closing three US stores, including the first to unionize

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Apple is closing three of its retail stores this summer, including its first location to unionize. The tech company said it plans to permanently close Apple Store in Trumbull, CT, Escondito, CA, and Towson, MD. The Apple Store location in Towson, was the first where unionized workers and Apple reached a contract agreement back in 2024. 

MacRumors published a statement from Apple confirming the closures. The company credited noting "the departure of several retailers and declining conditions" at the shopping centers where this trio of stores are housed as the reason for ending operations. "Our team members at Trumbull and North County will continue their roles at nearby Apple Retail stores," the statement reads. "Towson employees will be eligible to apply for open roles at Apple in accordance with the collective bargaining agreement." We reached out to the company for additional comment, and were sent the same statement. 

The International Association of Machinists and Aerospace Workers, which leads the union the Towson workers had joined, released a statement about the closure. "Apple’s claim that the collective bargaining agreement prevents relocation is simply false and raises serious concerns that this closure is a cynical attempt to bust the union," the organization said. "We are exploring all legal options and will work with elected officials and allies to hold Apple accountable."

This article originally appeared on Engadget at https://www.engadget.com/big-tech/apple-is-closing-three-us-stores-including-the-first-to-unionize-225941912.html?src=rss

Apple is closing three US stores, including the first to unionize

Posted on by

Apple is closing three of its retail stores this summer, including its first location to unionize. The tech company said it plans to permanently close Apple Store in Trumbull, CT, Escondito, CA, and Towson, MD. The Apple Store location in Towson, was the first where unionized workers and Apple reached a contract agreement back in 2024. 

MacRumors published a statement from Apple confirming the closures. The company credited noting "the departure of several retailers and declining conditions" at the shopping centers where this trio of stores are housed as the reason for ending operations. "Our team members at Trumbull and North County will continue their roles at nearby Apple Retail stores," the statement reads. "Towson employees will be eligible to apply for open roles at Apple in accordance with the collective bargaining agreement." We reached out to the company for additional comment, and were sent the same statement. 

The International Association of Machinists and Aerospace Workers, which leads the union the Towson workers had joined, released a statement about the closure. "Apple’s claim that the collective bargaining agreement prevents relocation is simply false and raises serious concerns that this closure is a cynical attempt to bust the union," the organization said. "We are exploring all legal options and will work with elected officials and allies to hold Apple accountable."

This article originally appeared on Engadget at https://www.engadget.com/big-tech/apple-is-closing-three-us-stores-including-the-first-to-unionize-225941912.html?src=rss

Apple is closing three US stores, including the first to unionize

Posted on by

Apple is closing three of its retail stores this summer, including its first location to unionize. The tech company said it plans to permanently close Apple Store in Trumbull, CT, Escondito, CA, and Towson, MD. The Apple Store location in Towson, was the first where unionized workers and Apple reached a contract agreement back in 2024. 

MacRumors published a statement from Apple confirming the closures. The company credited noting "the departure of several retailers and declining conditions" at the shopping centers where this trio of stores are housed as the reason for ending operations. "Our team members at Trumbull and North County will continue their roles at nearby Apple Retail stores," the statement reads. "Towson employees will be eligible to apply for open roles at Apple in accordance with the collective bargaining agreement." We reached out to the company for additional comment, and were sent the same statement. 

The International Association of Machinists and Aerospace Workers, which leads the union the Towson workers had joined, released a statement about the closure. "Apple’s claim that the collective bargaining agreement prevents relocation is simply false and raises serious concerns that this closure is a cynical attempt to bust the union," the organization said. "We are exploring all legal options and will work with elected officials and allies to hold Apple accountable."

This article originally appeared on Engadget at https://www.engadget.com/big-tech/apple-is-closing-three-us-stores-including-the-first-to-unionize-225941912.html?src=rss

Three YouTubers accuse Apple of illegal scraping to train its AI models

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Three YouTube channels have banded together and filed a class action lawsuit against Apple, as first spotted by MacRumors. According to the lawsuit, the creators behind h3h3 Productions, MrShortGameGolf and Golfholics have accused Apple of violating the Digital Millennium Copyright Act by scraping copyrighted videos on YouTube to train its AI models.

While the YouTubers' videos are available to watch on the platform, the lawsuit alleged that Apple illegally circumvented the "controlled streaming architecture" that regular users are limited to. The creators claimed that Apple's video scraping was used to train its generative AI products, adding that the tech giant's "massive financial success would not have been possible without the video content created" by the YouTubers. MacRumors noted that these YouTube channels have also filed similar lawsuits against other tech companies, including Meta, Nvidia, ByteDance and Snap.

It's not the first time a company's alleged AI training methods have gotten them in legal trouble. OpenAI and Microsoft were both accused of using copyrighted articles from the NYTimes to train its AI chatbots. Similarly, Perplexity was recently sued by Reddit and Encyclopedia Britannica for alleged copyright and trademark infringements. Last year, Apple was also named in a separate class action lawsuit from two neuroscience professors who claimed their copyrighted works were used without permission. We reached out to Apple for comment and will update the story when we hear back.

This article originally appeared on Engadget at https://www.engadget.com/ai/three-youtubers-accuse-apple-of-illegal-scraping-to-train-its-ai-models-181028745.html?src=rss

Judge tosses out X’s advertiser boycott lawsuit

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A US District Court Judge for the Northern District of Texas has dismissed X Corp.’s lawsuit against advertisers it claimed participated in an “illegal boycott” of X, Reuters reports. X originally filed its lawsuit in 2024 in response to advertisers pulling ads from the social media platform, a decision reportedly motivated by X's lax approach to moderating hate speech.

Judge Jane J. Boyle was not swayed by X’s claims that advertisers like Twitch, Shell, Nestlé and Lego pulling advertising amounted to an “antitrust injury.” The companies named in X’s lawsuit are members of the World Federation of Advertisers’ Global Alliance for Responsible Media (GARM), an organization used by advertisers to bargain for certain safety standards from the platforms they advertise on. Advertisers took issue with X's approach to moderation and responded accordingly, purchasing ad space on other social platforms instead. The decision hurt X's ad revenue, but as Boyle writes in the dismissal, the company made no claim that advertisers did so to benefit a competitor or to form their own competing platform. They also didn't prevent X from selling ad space to other companies not in GARM. "The very nature of the alleged conspiracy does not state an antitrust claim," Boyle writes, "and the Court therefore has no qualm dismissing with prejudice."

X’s lawsuit being "dismissed with prejudice" means the company will be unable to refile the lawsuit at a later date. Separately, Judge Boyle also denied X the ability to appeal her decision. The company's rancor for advertisers was apparent when owner Elon Musk compared X's lawsuit to going to war, but the vitriol appears to be all for naught. X claimed in January 2026 that nearly all its top advertisers had returned to buying ads on the platform. As a subsidiary of xAI, the social platform is now also facing new, even more pressing issues, like its AI assistant Grok's alleged willingness to generate sexually explicit imagery of minors.

This article originally appeared on Engadget at https://www.engadget.com/social-media/judge-tosses-out-xs-advertiser-boycott-lawsuit-184832071.html?src=rss

The EU is investigating Snapchat over possible child protection breaches

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The European Union has opened a formal investigation into whether Snapchat has breached Digital Services Act (DSA) regulations regarding the safeguarding of children using its app. 

Regulators say that the company, whose audience demographic has always skewed young, may not be doing enough to protect minors from grooming and "recruitment for criminal purposes." The EU is also looking into whether Snapchat’s younger users are too easily accessing information on how to buy illegal drugs and age-restricted products.

Brussels argues that while Snapchat requires users to be at least 13 years of age to sign up for an account, its self-declaration age assurance system may not be an adequate means of ensuring those younger than the minimum age can’t engage with the platform. The European Commission also says the current measures fail to assess whether users are younger than 17 years old, which it says is necessary for an "age-appropriate experience." It also alleges that adults are able to exploit the current system to lie about their own age and impersonate minors.

Investigators believe that the app itself doesn’t allow for other users to report accounts they suspect are being used by people younger than the minimum age requirements. Moreover, they argue that reporting illegal content found on the app is not easy enough, and that Snapchat may not be informing its users about "possibilities for redress.”

Other issues being looked at by the European Commission include child and teen accounts being recommended to other users by Snapchat’s Find Friends feature and insufficient guidance on available account safety features. 

The investigators are now in the process of gathering evidence, sending out interview invitations and requesting information from Snap. The Commission says the investigation is based on analysis of the last three years of risk assessment reports filed by Snapchat, as well as an information request it sent on October 10 in 2025.

"The safety and wellbeing of all Snapchatters is a top priority, and our teams have worked for years to raise the bar on safety," a Snapchat spokesperson said in a statement to Engadget. "Snapchat is designed to help people communicate with close friends and family in a positive, trusted environment, with privacy and safety built in from the start - including additional protections for teens. As online risks evolve, we continuously review, strengthen, and invest in these safeguards." 

The company added that it has acted proactively and transparently in its efforts to meet the DSA’s requirements, and said it would fully cooperate with the Commission throughout its investigation.

Snap is one of a number of social media companies currently facing increased scrutiny regarding the safety of minors using its platform. In 2023, the company added new features designed to make it harder for teenagers to connect with strangers. One of these measures involved increasing the amount of mutual friends users must have before appearing in search and suggested accounts.

Along with TikTok, the company recently settled a lawsuit that accused its platform of causing social media addiction. The case was brought by a 20-year-old woman who said she’d been harmed by addictive features on Meta, YouTube, TikTok and Snap as a child. This week, a jury ruled against Meta and YouTube in the trial, with the companies ordered to pay the woman, who was named as K.G.M in official documents, $6 million in damages.

This article originally appeared on Engadget at https://www.engadget.com/social-media/the-eu-is-investigating-snapchat-over-possible-child-protection-breaches-174722759.html?src=rss

Jury rules against Meta and YouTube in social media addiction case

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A jury in Los Angeles has found that Meta and YouTube were negligent in a closely-watched trial over social media addiction. The companies were ordered to pay $6 million in damages to the woman who said she was harmed by their addictive features as a child.

The case was brought by a 20-year-old woman, named in court documents as “K.G.M,” who sued Meta, YouTube, TikTok and Snap, saying that she had been harmed by the platforms as a child due to addictive features. TikTok and Snap reached a settlement ahead of the trial. 

According to NBC News, Meta was ordered to pay 70 percent of the $3 million in compensatory damages with YouTube taking on the remaining portion. The jury awarded an additional $3 million in punitive damages. “We respectfully disagree with the verdict and are evaluating our legal options,” a Meta spokesperson said in a statement. “We disagree with the verdict and plan to appeal.,” Google spokesperson José Castañeda said in a statement. “This case misunderstands YouTube, which is a responsibly built streaming platform, not a social media site.”

The weeks-long trial has been closely watched because it's the first of many court cases in which plaintiffs have argued that social media platforms harmed minors due to how they were designed. Meta's lawyers and executives have disputed the idea that social media should be considered an "addiction." CEO Mark Zuckerberg testified that the company wants Instagram to be "useful," and repeatedly accused the plaintiff's lawyer of "mischaracterizing" his past statements. 

“This is the first time in history a jury has heard testimony by executives and seen internal documents that we believe prove these companies chose profits over children,” Joseph VanZandt, one of K.G.M.’s lawyers, said in a statement to The New York Times,

For Meta, it's the second legal setback in as many days. The verdict comes one day after a jury in New Mexico ruled against Meta in a trial over child safety issues. The company was ordered to pay $375 million in penalties; the company said it would appeal.

Update, March 25, 2026, 11:22AM PT: Added a statement from Google.

Update. March 25, 2026, 2:05PM PT: Added details about punitive damages.

This article originally appeared on Engadget at https://www.engadget.com/social-media/jury-rules-against-meta-and-youtube-in-social-media-addiction-case-181344860.html?src=rss

Supreme Court rules ISPs aren’t liable for subscribers’ music piracy

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The Supreme Court ruled unanimously on March 25 that Cox Communications is not liable for copyright infringement committed by its subscribers, reversing a 2024 appeals court decision that had upheld the ISP's liability.

Sony Music Entertainment and other major labels sued Cox in 2018, arguing the company failed to terminate internet service for subscribers repeatedly flagged for pirating copyrighted music. A jury awarded $1 billion in statutory damages after finding Cox willfully infringed all 10,017 copyrighted works at issue, though this was overturned on appeal and a new trial was ordered.

Writing for the court, Justice Clarence Thomas said a provider is not liable "for merely providing a service to the general public with knowledge that it will be used by some to infringe copyrights." A provider is liable only if it intended or actively encouraged the infringement, Thomas wrote. The decision applies the same framework the court used in 2005 when it found file-sharing service Grokster liable for promoting piracy.

Cox serves approximately six million subscribers and contractually prohibits them from using their connections to distribute copyrighted content. A firm enlisted by the labels to track piracy sent Cox 163,148 infringement notices over a roughly two-year period. Cox terminated just 32 subscribers for copyright infringement during that span.

This article originally appeared on Engadget at https://www.engadget.com/entertainment/streaming/supreme-court-rules-isps-arent-liable-for-subscribers-music-piracy-163412791.html?src=rss