Alphabet Inc., the parent company of Google, has received preliminary approval from a California judge to settle a shareholder lawsuit that accused the company of failing to disclose a data privacy vulnerability that affected its defunct social media platform, Google+.
The lawsuit stemmed from allegations that Alphabet did not promptly inform investors about a breach that compromised user data on Google+, which was eventually shut down in 2019. Shareholders argued that the company had a duty to disclose the risk to safeguard investor interests and to adhere to regulatory standards concerning data privacy and corporate transparency.
Filed in 2018, the lawsuit followed investigative reports that revealed the exposure of personal data of hundreds of thousands of users over a prolonged period. Although no evidence was found suggesting the data was misused, the delayed disclosure raised concerns among stakeholders and regulators.
The preliminary approval allows the settlement process to move forward, including the notice to class members and potential for final approval at a hearing scheduled at a later date. Details of the financial terms were not disclosed in this rating, though they typically include corporate governance reforms in addition to monetary compensation.
Alphabet has not admitted any wrongdoing as part of the settlement agreement. A spokesperson for the company stated that resolving the matter avoids protracted litigation and serves the best interests of the company and its shareholders.
The case is one among several high-profile shareholder suits in recent years linked to privacy and data protection issues, highlighting increasing investor scrutiny on technology companies’ transparency practices. If finalized, the settlement could set a precedent influencing future corporate governance expectations in the tech industry.
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