The scandal regarding Carrier IQ continues to grow as more and more smartphone companies and carriers are sued over this privacy scandal.

So far, there are two class-action lawsuits against Carrier IQ, HTC and Samsung. Another lawsuit was recently filed against a longer list of companies which includes Carrier IQ, AT&T, Sprint Nextel, T-Mobile USA, HTC, Apple, Samsung, and Motorola Mobility.

This new lawsuit, filed in U.S. District Court in Delaware, asserts that Carrier IQ is collecting more data than what is being disclosed in the public. According to the lawsuit, "in addition to collecting device and service-related data, Carrier IQ's software can collect data about a user's location, application use, Web browsing habits, videos watched, texts read and even the keys they press."

The suit also claims that the system violates different laws regarding privacy and security like the Federal Wiretap Act, Stored Electronic Communications Act and the Computer Fraud and Abuse Act. The suit demands monetary compensation for the damage done by this software as well as a permanent order that inhibits these companies from installing Carrier IQ software in their mobile devices and using it for carrier services.

Carrier IQ is a third-party application which is installed in mobile devices and acts as a diagnostic tool for mobile and carrier companies. There are approximately 14 million devices that have Carrier IQ installed in its system. As a third-party application, this software is not part of any OS like Android or Blackberry. Carrier IQ denied the allegations that it is recording keystrokes and private information of users.

According to a statement released by the company, "The data we gather is transmitted over an encrypted channel and secured within our customers' networks or in our audited and customer-approved facilities." Trevor Eckhart, an Android developer, was the one who first raised the issue about Carrier IQ on mobile devices and carrier networks.

Telecoms who have admitted that they are carrying Carrier IQ supported the claim that they are only utilizing this software in order to "improve wireless network and service performance." On the other hand, Apple had announced that they have plans to eliminate Carrier IQ in their system once their new OS has been properly installed to Apple devices.