Jonathan Stempel
Jan 28 (Reuters) – Google (GOOG) will pay $135 million to settle a class-action lawsuit filed by smartphone users who accused the company of programming its Android operating system to collect their cellular data without permission.
The preliminary settlement with the Alphabet unit was filed late Tuesday in federal court in San Jose, California, and requires a judge’s approval.
Google has denied wrongdoing in agreeing to the settlement, which covers users of Android mobile devices since November 12, 2017.
Users say Google unnecessarily collects cellular data they purchased from mobile carriers, even if they closed Google apps, disabled location sharing or locked their screens.
They say the data supports Google’s product development and targeted advertising campaigns and amounts to “conversions” when one party wrongfully seizes another party’s property for the purpose of control.
As part of the settlement, Google will not transfer data without Android users’ consent when they set up their phones.
The Mountain View, California-based company will also make it easier for users to stop streaming by toggling it, and will disclose those transfers in its Google Play terms of service.
Plaintiffs attorney Glen Summers said in a court filing that he believed the $135 million award was the largest ever awarded in a conversion case. Payments are capped at $100 per class member. A damages expert for the plaintiffs estimated potential losses could reach $1.05 billion.
The lawsuit began in November 2020 and was originally scheduled to open on August 5.
“We are pleased to resolve this case, which misrepresented standard industry practices for keeping Android secure,” Google spokesman Jose Castaneda said in an email. “We are providing additional disclosures to give people more understanding of how our services work.”
Plaintiffs’ attorneys may seek attorney fees of up to $39.8 million, or 29.5% of the settlement fund.
(Reporting by Jonathan Stempel in New York. Editing by Andrea Ricci and Mark Potter)
