New York, Feb 19, 2026, 17:24 EST — After-hours
Apple shares slipped Thursday, off about 1.5% at $260.58 in after-hours trading, putting the tech giant’s market cap near $4.0 trillion. West Virginia Attorney General JB McCuskey announced a lawsuit against Apple, targeting iCloud and its alleged involvement in distributing child sexual abuse material (CSAM). He described the move as the first government case of its kind against Apple. (West Virginia Attorney General)
West Virginia’s complaint takes direct aim at Apple, contending the company isn’t just a passive bystander, but instead manages every layer—hardware, software, cloud. The filing quotes Michael Stuart, a former U.S. attorney for the state, who called Apple’s numbers on CSAM reporting “laughably (and tragically) low.” (West Virginia Attorney General)
Apple says it’s “innovating every day to combat ever-evolving threats and maintain the safest, most trusted platform for kids,” according to a spokesperson’s comments to CNN. The company highlighted its “Communication Safety” feature—this tool automatically blurs images containing nudity when detected in children’s apps like Messages and FaceTime. (ABC30 Fresno)
Apple slipped 1.4% by the bell, dragging on the S&P 500 harder than any other stock as the index finished in the red. “The market is trying to grapple with what business lines are under threat in a material way from AI,” said Keith Buchanan, senior portfolio manager at GLOBALT Investments. (Reuters)
Focus shifts to Friday, when traders await the Personal Consumption Expenditures (PCE) price index. That’s the Federal Reserve’s favored inflation measure, and the Bureau of Economic Analysis has set Feb. 20 for the next update. (Bureau of Economic Analysis)
Outside the legal fray, EverPass Media has signed on with Apple to distribute Apple TV’s live sports lineup in commercial spots like bars and hotels. “Apple’s content strengthens and diversifies our library of premium offerings,” CEO Alex Kaplan said. (Business Wire)
Apple has issued another update on MLS coverage, noting that EverPass will provide commercial venues with access to Apple TV’s live sports lineup via its EverPass Core package. The company also pointed to distribution deals struck with DIRECTV and Comcast. (Apple)
Still, the legal showdown is the key variable here. Should the case pick up momentum, it could ramp up pressure on Apple’s approach to privacy and compel the company to alter its methods for detecting and reporting abusive material—even as Apple insists it’s possible to keep children safe without expanding scanning practices.
Apple is set to host its annual shareholder meeting virtually on Feb. 24. (Apple Investor Relations)
