Canadian iPhone hacking firm sues ex-worker over alleged theft of secrets

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeCybersecurityInnovationWorkCanadian iPhone hacking firm sues ex-worker over alleged theft of secretsMagnet Forensics filed a lawsuit against Mario Del Gaudio and Paradigm Shift Technology, alleging the flaw was publicly disclosed on the company's blogAuthor of the article:Last updated 1 hour ago You can save this article by registering for free here. Or sign-in if you have an account.The flaw at the center of the dispute was in Apple Inc.’s A12 and A13 chips in iPhones, according to the lawsuit. Photo by HECTOR RETAMAL/AFP via Getty Images filesMagnet Forensics Inc., a Canadian cybersecurity firm, accused a former contractor of sharing trade secrets about a previously unknown flaw used to hack iPhones with a rival firm.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe company filed a lawsuit in federal court against Mario Del Gaudio and Paradigm Shift Technology S.L., alleging the flaw was publicly disclosed on Paradigm’s blog. Both Magnet and Paradigm Shift develop so-called zero-day hacking tools to sell to government customers such as police for investigations. Zero days are computer flaws that aren’t known to cybersecurity personnel, meaning they have zero days to fix them.Neither Del Gaudio, his attorney nor Paradigm immediately responded to requests for comment.FP Work touches on HR strategy, labour economics, office culture, technology and more.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Work will soon be in your inbox.We encountered an issue signing you up. Please try againThe flaw at the center of the dispute was in Apple Inc.’s A12 and A13 chips in iPhones, according to the lawsuit. Magnet used the flaw to allow customers to hack into iPhones, according to the suit filed July 7 in the Northern District of Georgia. The company said in court records said that the public disclosure of the flaw alerted Apple to the flaw and allowed it to be potentially fixed, reducing its value to customers.The disclosure caused “irreparable harm and continuing damage,” according to Magnet. Apple didn’t immediately respond to a request for comment.Private equity firm Thoma Bravo acquired Magnet Forensics in 2023 for US$1.3 billion. Magnet Forensics works with more than 6,000 public and private sector customers in 100 countries, according to the suit.The technical capability allowed law enforcement and government agencies to access, recover and analyze data and evidence from iPhones that would otherwise be inaccessible, according to Magnet.In June, Paradigm Shift Technology published research on a zero-day vulnerability in A12 and A13 iPhone chips. As an iOS exploit engineer, Del Gaudio directly worked on that same vulnerability for months during his time at Magnet. Magnet alleged that Del Gaudio was a part of the Paradigm Shift research, and thus allegedly violated a contract signed between Magnet and Del Gaudio.Magnet also sent multiple cease and desist letters. The research remains publicly available.The alleged theft of the zero-day vulnerability follows a 2025 case in which a former government contractor working for military contractor L3Harris Technologies Inc. pleaded guilty and was sentenced to more than seven years in prison for stealing and selling offensive hacking tools to a Russian broker.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.