Apple Sues ex-Software Engineer for Leaking Product, Policy Details to Reporters

Andrew Aude, who joined Apple after graduating from college in 2016, signed an intellectual property agreement (IPA), agreeing not to disclose confidential information to non-Apple employees during and after his employment, the complaint said. In “clear violation” of his IPA, Aude “leaked highly sensitive information about Apple’s business practices, internal policies, and products -- including those not yet released" -- to employees at other technology companies "and at least three national journalists,” the complaint said.

Over five years, Aude leaked information about more than six Apple policies and products including what he described as “top secret” information without authorization to do so, said the complaint. Information leaked included details of an unannounced app; strategies for regulatory compliance; product hardware details; research and development efforts in the spatial computing space; product development policies; and corporate and department headcount, the complaint said.

Aude leaked the information using his company-issued iPhone by text, encrypted messages and phone calls, said the suit. From June to September, Aude connected with a Wall Street Journal journalist, code-named “Homeboy,” over 1,400 times using an encrypted messaging app, it said. The defendant also read “Homeboy” a final feature list for an unannounced Apple product over the phone, it said. The defendant sent a journalist at The Information over 10,000 texts and traveled “across the continent to meet with her,” it said.

In connection with one leak, Aude “admitted that he violated his obligations to Apple so he could ‘kill’ products and features with which he took issue,” said the complaint. Google searches, article shares and screenshots saved to his work phone reveal that “vanity and personal enjoyment of the media’s attention also played a significant role in his malfeasance,” the complaint said. In one screenshot of an exchange with the WSJ journalist, Aude said he “can’t wait for chaos to break out” in reaction to a forthcoming article reflecting his leaked information,” it said.

“Attempting to justify his actions to others,” Aude “explained that he intended to ‘[expletive] with policy and [the] press,’” the complaint said. Aude “did all this while purporting to work for Apple and promote Apple’s interests, but his actions demonstrated the opposite,” it said.

Apple learned of Aude’s actions in the fall, and in a Nov. 7 interview, the defendant repeatedly denied he had leaked any information, the complaint said. He claimed he didn’t have his phone with him, and “feigning the need to visit the bathroom mid-interview,” Aude “permanently deleted significant amounts of evidence from his device,” the complaint said. That included the Signal app that logged the history of leaking information to the WSJ reporter via encrypted communications, it said.

Aude “came partially clean” Dec. 12 when Apple confronted him about deleting the Signal app, the complaint said. In the follow-up interview, he offered “only narrow admissions limited to the information he had not been able to destroy,” it said.

Apple terminated Aude for misconduct, something it doesn’t do “lightly,” the complaint said. As a result of Aude’s “willful destruction of evidence,” the company can’t know “the universe of what he disclosed to whom and when,” it said. Before filing the lawsuit, it reached out to Aude, asking “for his full cooperation in resolving this matter without litigation,” it said. Aude “did not commit to cooperating,” it said.

Aude’s “pattern of disclosing Apple’s highly sensitive information to others -- wantonly, without regard for his legal or contractual obligations, and for the specific purpose of harming Apple -- and his ongoing knowledge of Apple’s confidential and proprietary information create a significant risk that the disclosures will continue," the complaint said.

Aude’s leaks, including information he shared with friends at other tech companies, resulted in the publication of multiple news stories discussing Apple’s “confidential and proprietary information," said the complaint. The disclosures have harmed the company with respect to its competitors, which “are advantaged by knowing more about Apple’s policies, product roadmap, and strategy.” His disclosures also “impeded Apple’s ability to surprise and delight with its new offerings,” it said.

Apple brings claims of breach of the IPA and its restricted stock unit (RSU) award agreement, plus breach of loyalty and duty. It requests injunctive relief; damages and punitive damages; an order directing Aude not to disclose Apple’s confidential and proprietary information to third parties without consent; pre-and post-judgment interest; restitution or disgorgement of Aude’s “discretionary bonuses, discretionary RSUs including, unvested RSUs and shares underlying vested RSUs and/or the cash equivalent, and any related proceeds and profits,” plus attorneys’ fees and costs.