Apple and SIS have a qualified law enforcement privilege that allows them to err in store security-related accusations and not be sued for it. However, if they exhibit "reckless disregard for the truth" – ignoring obvious facts, for example, they lose that privilege.

Curious to wonder if they mean they just lose that privilege on a case-by-case basis, or if they lose it for all future errors in general.

If it's the latter, then Apple is in serious trouble and they'll probably end up paying this kid big time in a sealed settlement so they don't lose this privilege.