Google, Android users near final approval of $135M data transfer settlement

SAN JOSE, Calif. (CN) — A proposed class that sued Google over claims the tech giant surreptitiously performed passive data transfers over its Android operating system appears headed toward a $135 million settlement.

U.S. Magistrate Judge Virginia DeMarchi on Thursday granted preliminary approval to a class of Android users claiming Google — without informing or getting users’ consent — transmitted large amounts of information between Android devices and its own servers. The transfers reportedly occurred when the devices were idle, untouched and with all apps closed. They also used people’s cellular data and didn’t compensate users for the data consumed.

A final approval hearing is set for June 23.

The class is defined as people in the United States who used the Android operating system to access the internet from Nov. 12, 2017, to the date a final order is signed. Class members of a similar, California state suit are excluded from the federal class.

“Although individual settlement payments are capped at $100 per class … plaintiffs’ counsel do not expect the cap to be reached,” the judge said in her decision.

Settlement funds will go into an interest-bearing trust once final approval is granted. Class attorneys intend to request almost $40 million from the fund in fees, with another $750,000 in costs and expenses. Administrative costs are expected to reach $9.3 million.

Additionally, the named plaintiffs can each receive up to $25,000.

In addition to the payment, Google must make certain disclosures to Android users.

When someone sets up a new Android phone, Google must disclose the conduct that spawned the legal action. That includes having Google Play’s terms of service include the information that its system services often require internet connectivity, which could use their cellular data. Also, network communications could occur when someone isn’t directly using their device, the judge said.

A help page available to users must also state that the information exchange would tap into someone’s mobile data, if a Wi-Fi network wasn’t available.

DeMarchi said she had to determine certain criteria were met before granting preliminary approval to the settlement. That included whether it was fair, reasonable and adequate. It also meant that the number of class members needed to generally exceed 40.

“The numerosity requirement is met here, as the record reflects that there are more than 100 million Americans who used Android smartphones with cellular data plans during the class period,” she said.

The class also must have suffered the same injury. DeMarchi determined the action met this benchmark, as the class members’ claims focused on the use of cellular data through the same software that appears on all, or almost all, Android devices.

“Permitting the case to proceed as a single class action is an efficient use of the court’s and the parties’ resources and the most expeditious way to resolve common questions about Google’s use of cellular data,” DeMarchi said.

The class action reached the Ninth Circuit before returning to the lower court and attaining preliminary approval.

Class members filed the action in 2020, making claims of conversion and quantum meruit — the latter being a legal path to gain restitution for improper enrichment.

A judge granted Google’s motion to dismiss, giving no leave to amend. The Ninth Circuit affirmed dismissing the quantum meruit claim. However, it reversed and remanded the conversion issue to the lower court.

The other, California state suit led class members to request a stay of the federal case, pending the state suit’s resolution. A judge in November denied the stay and two days later the parties announced they’d reached a settlement.

Attorneys involved in the class action couldn’t be reached for comment after business hours Friday.