Google settles a massive $5 billion consumer-privacy lawsuit over its alleged improper tracking of "Incognito mode" users.
The lawsuit alleged that the tech giant secretly tracked millions of people who believed that they were browsing the internet privately. The legal challenge initially sought at least $5 billion and while settlement terms were not disclosed, the lawyers said that they expect to present a formal settlement for court approval by Feb. 24, 2024.
Google Settles $5 Billion Lawsuit
The plaintiffs in the case claim that Google's GOOGL, -0.10% GOOG, -0.11% analytics, cookies, and apps let the tech giant track user activity. This was true even when they set Google's Chrome browser to "Incognito" mode and other browsers to "private" browsing status.
They assert that this turned Google into an "unaccountable trove of information" to learn about their friends, shopping habits, and "potentially embarrassing things" that they sought on the internet. The company and lawyers for the plaintiffs were not immediately available for comment regarding the situation, as per Market Watch.
Lawyers from both sides have said that they signed a binding term sheet as part of the mediation process. They would then submit the agreement for final approval by a federal judge in Oakland, California.
Despite the accusations, Google has denied wrongdoing in the case and the proposed class-action suit was slated to head to trial on Feb. 5, if a settlement was not reached between the two sides.
United States District Judge Yvonne Gonzalez Rogers placed the trial on hold pending final review of the agreement. In August, the judge handling the case denied a bid by the tech giant to have the lawsuit dismissed.
Attorneys for the plaintiffs were seeking to recover at least $5,00 in damages per user for the alleged privacy violations of federal wiretapping and California privacy laws that date back to June 1, 2016, according to the New York Post.
Rogers' rejection of Google's dismissal claim was made because the lawsuit was an open question into whether or not the tech giant made a legally binding promise not to collect users' data when they browsed in private mode.
Violation of User Privacy
The federal judge cited Google's privacy policy and other statements by the company's officials that suggested limits on what information it could collect from users. The latest lawsuit was filed in 2020 and covers millions of Google users, said Reuters.
While the massive $5 billion lawsuit is being settled, Google is still facing a number of legal challenges, including several antitrust cases that target various parts of the tech giant's business empire.
U.S. District Judge James Donato will hold hearings in January on potential remedies after a federal jury determined that the company had maintained an illegal monopoly through its Android app store and its closely linked in-app billing system.
Donato could order the tech giant to change business practices or even break up part of its business depending on how the situation develops. The tech giant has also reached a $700 million settlement with all 50 U.S. states in a related case.
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