Apple is facing a $5 million lawsuit from a Minnesota man who claims the company failed to help recover his stolen data. Michael Mathews filed the case in January after thieves stole his iPhone in Scottsdale, Arizona.
Mathews says he lost two terabytes of personal and business information, including family photos, tax records, and work research. He also claims the loss forced his tech consulting firm to shut down.

Recovery Key at the Heart of the Dispute
The lawsuit centers around Apple’s Advanced Data Protection (ADP) feature. ADP requires users to store a 28-digit Recovery Key to regain access to their accounts. Without this key, even Apple cannot recover the encrypted data.
According to Mathews, the thieves accessed his phone, changed the Apple ID password, and either created or replaced the Recovery Key. As a result, he permanently lost access to his digital files.
Mathews argues that Apple should have a solution for situations like his. His lawyer, K. Jon Breyer, called Apple’s position “indefensible,” stating that the company holds data it refuses to return.
Apple’s Response and the Road Ahead
Apple declined to comment specifically on the lawsuit but expressed sympathy for victims of theft. The company emphasized its strong commitment to protecting user data. Under ADP, even Apple cannot retrieve information without the Recovery Key.
The case has entered the discovery phase, which could take up to eight months. As the legal battle unfolds, the lawsuit highlights an important question: how should tech companies balance user security with data accessibility?