Alphabet’s Google [GOOGL:US] has agreed to settle a lawsuit accusing it of covertly tracking the internet activities of millions of users who believed their browsing was private, as reported by Reuters on December 28. The proposed class action sought a minimum of USD5bn in damages. U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California, has suspended the scheduled trial, as both Google and the plaintiffs’ lawyers confirmed a preliminary settlement. Although specific terms remain undisclosed, the parties have agreed on a binding term sheet through mediation, anticipating a formal settlement presentation for court approval by February 24, 2024. The lawsuit, filed in 2020, alleged that Google’s analytics, cookies, and apps enabled tracking even when users employed private browsing modes, turning Google into an “unaccountable trove of information.”

The plaintiffs claimed that Google’s practices violated federal wire-tapping and California privacy laws, seeking at least USD5,000 in damages per user. The case covered millions of Google users since June 1, 2016, and accused the tech giant of collecting sensitive information, such as users’ friends, hobbies, favorite foods, shopping habits, and potentially embarrassing online searches. U.S. District Judge Gonzalez Rogers had previously rejected Google’s attempt to dismiss the lawsuit, questioning whether Google had made a legally binding commitment not to collect user data during private browsing. The judge cited Google’s privacy policy and other company statements indicating potential limits on data collection during private browsing modes.

Sources:

https://www.reuters.com/legal/google-settles-5-billion-consumer-privacy-lawsuit-2023-12-28/