Robert Besser
06 Jun 2025, 00:52 GMT+10
MOUNTAIN VIEW, California: To settle a major shareholder lawsuit, Google is writing a US$500 million check — not for damages, but to overhaul its compliance systems.
The technology giant has agreed to spend that amount over 10 years to revamp its handling of legal risk, according to a preliminary settlement filed late last week in U.S. District Court in San Francisco. The deal is part of a derivative lawsuit targeting officials at Google parent Alphabet, including CEO Sundar Pichai and co-founders Larry Page and Sergey Brin.
The litigation, led by two Michigan pension funds, accused Alphabet's leadership of breaching fiduciary duties by exposing the company to antitrust liability in areas like its search engine, ad technology, Android, and app distribution.
As part of the settlement, Alphabet will establish a dedicated board-level compliance committee, separate from its audit board. A new senior executive committee reporting to Pichai will also be created to oversee regulatory risk. In addition, Google will form a compliance group made up of internal experts and product team leads.
"Over the years, we have devoted substantial resources to building robust compliance processes," Google said in a statement Monday. "To avoid protracted litigation, we're happy to make these commitments." The company denied any wrongdoing.
The compliance reforms must stay in place for at least four years. Shareholders won't receive direct compensation, but their attorneys plan to seek up to $80 million in legal fees.
"These reforms, rarely achieved in shareholder derivative actions, constitute a comprehensive overhaul of Alphabet's compliance function," the shareholders' lawyers wrote, calling it a "deeply rooted culture change."
Patrick Coughlin, a lawyer for the plaintiffs, said the board failed to act on early warnings of antitrust exposure. "There are things it could have done, and should have done, earlier," he said.
The deal was disclosed the same day another federal judge, Amit Mehta, wrapped up hearings on how to remedy Google's monopoly in search following a landmark ruling last August. The U.S. Justice Department has proposed forcing Google to sell its Chrome browser and share search data with rivals.
Get a daily dose of Broadcast Communications news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Broadcast Communications.
More InformationSYDNEY, Australia: Australia's independent wage-setting body, the Fair Work Commission (FWC), has announced a 3.5 percent increase...
MOUNTAIN VIEW, California: To settle a major shareholder lawsuit, Google is writing a US$500 million check — not for damages, but to...
MADRID, Spain: Spain's push to curb short-term tourist rentals is being outpaced by the market's explosive growth, new data shows —...
NEW YORK, New York - U.S. stocks were mixed Wednesday as investors and traders grappled with the ADP report, which revealed payrolls...
DEARBORN, Michigan: Ford is pulling back tens of thousands of its electric pickup trucks over a steering defect that could lead to...
NEW YORK CITY, New York: Best Buy, the biggest electronics store chain in the U.S., has lowered its forecast for the year. The company...
SHARJAH, 7th May, 2025 (WAM) -- The Sharjah Broadcasting Authority (SBA) recently took part in the 76th World News Media Congress,...
United States President Donald Trump delivers a speech at the United States Steel Corporation Mon Valley Works Irvin Plant in West...
Its better to fall short in pursuit of excellence than settle for mediocrity Wes Hodkiewicz Russ from Peosta, IA Hi Mike and...
CANBERRA, June 4 (Xinhua) -- The results of Australia's general election have been finalized after the electoral commission completed...
SYDNEY, June 3 (Xinhua) -- An investigation has been launched into the death of a man who was attacked by a fellow patient at a Brisbane...
Montreal, May 16, 2025 - This morning, on behalf of the National Film Board of Canada (NFB), Government Film Commissioner and NFB Chairperson...