- Google to pay $1.375 billion to settle privacy lawsuits filed by the state of Texas.
- $50 million settlement addresses racial discrimination against Black employees.
- The settlements highlight growing scrutiny over Big Tech’s practices.
Google has agreed to pay $1.375 billion to settle two privacy lawsuits with the state of Texas. These lawsuits involve allegations of illegal data tracking, including users’ location and facial recognition data.
Meanwhile, Google will also pay $50 million to resolve a lawsuit brought forward by over 4,000 Black employees in California and New York. They allege systemic racial discrimination within the company.
Google’s Costly Legal Battles: Privacy and Racial Discrimination Claims
The $1.375 billion settlement with Texas is the largest of its kind involving Google. It reflects the state’s aggressive stance against data privacy violations. The legal action focused on Google’s alleged use of location data and facial recognition technology without proper consent. This marks a significant escalation in state-level scrutiny over Big Tech’s privacy practices.
In contrast, the $50 million settlement addresses workplace discrimination against Black employees. This case was initially brought forward by April Curley. Curley, a former recruiter for historically Black colleges, claimed Google not only underpaid Black employees but also restricted their opportunities for advancement. Thus, they perpetuated a racially biased corporate culture.
California and New York-based plaintiffs accused Google of sidelining Black employees to lower-level roles, blocking promotions, and systematically downgrading performance reviews. The company’s alleged dismissal of employees as lacking “Googleyness” was cited as a racially coded justification for discriminatory practices.
Despite denying any wrongdoing, Google stated it is committed to fostering an equitable workplace. Plans are underway to implement measures to address the concerns raised by the plaintiffs. The settlement, which still requires court approval, reflects broader pressure on tech companies. They must address racial and privacy issues internally before they escalate into costly legal battles.
Google’s twin settlements underscore a broader reckoning for tech giants grappling with privacy and discrimination allegations. It signals that regulatory scrutiny over Big Tech is far from over.
“This $1.375 billion settlement is a major win for Texans’ privacy and tells companies that they will pay for abusing our trust.” — Texas Attorney General Paxton
