Apple loses bid to move consumer privacy suit to arbitration

Consumers claim an iPhone operating system flaw, coupled with recycled T-Mobile phone numbers, gave third parties unauthorised access to users’ communications. The breach violates both companies’ promise that iMessage and Facetime features were secure, they said in the complaint. — AP

Apple Inc must continue fighting a consumer privacy lawsuit in open court and can’t move it behind the closed doors of private arbitration, a judge ruled, turning aside a request from the tech giant.

Companies generally prefer arbitration since it’s quicker, they have a say in the selection of the judges and the rulings are final with only limited rights to appeal. The cases are also dealt with on an individual basis, raising the costs to plaintiffs who can’t share expenses as in class-action cases, where their fees may also be contingent on winning the case.