Internet giant Alphabet Inc’s Google (NASDAQ:GOOG) (NASDAQ:GOOGL) has achieved a preliminary settlement in a legal action that accused the company of clandestinely tracking the online activity of millions of users who believed they were surfing the internet privately.

What Happened: U.S. District Judge Yvonne Gonzalez Rogers temporarily halted the trial for the proposed class action, originally slated for Feb. 5, Reuters reported. This followed a declaration by attorneys representing both Google and the consumers that a preliminary settlement had been achieved.

Although the lawsuit demanded a minimum of $5 billion, the details of the settlement remain undisclosed. However, the legal representatives noted that they have agreed to a binding term sheet through mediation and anticipate presenting a formal settlement for court approval by Feb. 24, 2024.

Why It Matters: Plaintiffs in the lawsuit, which was filed back in 2020, alleged that Google tracked their online activity even when they utilized Google’s Chrome browser in “Incognito” mode or other browsers in “private” browsing mode. This was supposedly possible due to Google’s analytics, cookies, and apps.

The suit covered “millions” of Google users since June 1, 2016, and sought at least $5,000 in damages per user for violations of federal wire-tapping and California privacy laws.

Image Via Shutterstock

Engineered by Benzinga Neuro, Edited by Kaustubh Bagalkote 

The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.