Google to Pay $135M to Settle Lawsuit from Smartphone Users

Google (GOOGL) has agreed to pay $135 million to settle a class-action lawsuit from smartphone users who said that the tech giant collected their cellular data without permission. The proposed settlement was filed on Tuesday in federal court in San Jose, California, and still needs a judge’s approval. The case covers people who have used Android phones since November 12, 2017. Although Google agreed to the settlement, the company denied any wrongdoing, with spokesperson Jose Castaneda saying it resolved the case to move forward and provide clearer information about how its services work.

According to the lawsuit, users alleged that Google continued to collect cellular data even after they closed Google apps, turned off location sharing, or locked their phone screens. They argued that this data, which users paid for through their mobile carriers, was used to support Google’s product development and targeted advertising. The plaintiffs described this practice as “conversion,” a legal term for wrongly taking and using someone else’s property. As part of the settlement, Google will change how Android handles data sharing.

Indeed, the company will no longer transfer cellular data without getting user consent during phone setup, will make it easier to stop these transfers using simple settings, and will clearly explain the practice in Google Play’s terms of service. Impressively, a lawyer for the users said that the $135 million settlement is the largest ever in a conversion case, though individual payments are capped at $100 per person. Still, the plaintiffs’ lawyers may seek up to $39.8 million from the settlement to cover legal fees.

Is GOOGL Stock a Good Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 26 Buys and seven Holds assigned in the past three months. Furthermore, the average GOOGL price target of $347.70 per share implies 4.4% upside potential.

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