Google to pay $135 million to settle Android data transfer lawsuit

By Jonathan Stempel

Jan 28 (Reuters) – Google (GOOG) will pay $135 million to settle a proposed class action by smartphone users who accused Google of ​programming its Android operating system to collect their cellular data without ‌permission.

A preliminary settlement with the Alphabet unit was filed late Tuesday night in the San ‌Jose, California, federal court, and requires a judge’s approval.

Google denied wrongdoing in agreeing to the settlement, which covers users of Android-powered mobile devices since November 12, 2017.

Users said Google needlessly collected cellular data, which they purchased from mobile carriers, ⁠even when they closed Google’s ‌apps, disabled location-sharing or locked their screens.

They said the data supported Google’s product development and targeted advertising campaigns and ‍amounted to “conversion,” when a party wrongfully takes another party’s property with the intent to assert control.

As part of the settlement, Google will not transfer data without obtaining consent from Android ​users when they set up their phones.

The Mountain View, California-based company will ‌also make it easier for users to stop the transfers by toggling, and will disclose the transfers in its Google Play terms of service.

Glen Summers, a lawyer for the plaintiffs, said in a court filing he believed the $135 million payout is the largest ever in a conversion case. Payments are capped ⁠at $100 per class member. A damages expert for ​the plaintiffs estimated that potential damages could have ​reached $1.05 billion.

The lawsuit began in November 2020. A trial had been scheduled for August 5.

“We are pleased to resolve this case, which ‍mischaracterized standard industry ⁠practices that keep Android safe,” Google spokesperson Jose Castaneda said in an email. “We’re providing additional disclosures to give people more information about how ⁠our services work.”

The plaintiffs’ lawyers may seek up to $39.8 million, or 29.5% of the settlement ‌fund, for legal fees.

(Reporting by Jonathan Stempel in New York. Editing ‌by Andrea Ricci and Mark Potter)