Google Reaches Deal in Cookie Tracking MDL

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A settlement has been reached between Google and consumers in a multidistrict litigation claiming the technology giant used circumvented default privacy settings, which enabled tracking of users’ browsing activities without their consent.

“Plaintiffs and Google have reached a class settlement with respect to the claims against Google to be submitted to the court for approval pursuant to Fed. R. Civ. P. 23,” according to Court documents.

While details surrounding the settlement have not been disclosed, a stipulation document filed this week in Delaware federal court announced the deal.

In the legal system, a stipulation is an agreement made between two or more parties in a legal proceeding that is submitted to the judge for approval.

Stipulations may be made prior to trial, or during a trial, as these agreements are made to regulate certain matters related to the proceeding.

In this case, plaintiff William Gourley was dropped from the lawsuit. Gourley passed away in July 2015 and according to the amended complaint, his estate is not interested in pursuing the action.

The settlement follows the web users March petition to the U.S. Supreme Court to upend a Third Circuit decision they allege compromised the online privacy of millions of Americans when it found third parties such as Google can be immune from liability under the Wiretap Act in accessing communications without permission.

The Supreme Court ruling upheld dismissal of claims of violations of the Computer Fraud and Abuse Act, Wiretap Act and Electronic Communications Privacy Act while reviving allegations under the California constitution and tort law.

The web users contend if this decision was left intact, online Wiretap Act and other protections from private and government surveillance would be eliminated.

Filed in December 2012, the multidistrict litigation, consisting of 24 consolidated lawsuits alleged that Google and other companies including Vibrant Media and PointRoll Inc. used code to sidestep default settings designed by Apple and Microsoft that protected user privacy by blocking third-party cookies.

A Delaware federal judge dismissed the case in October 2013, ruling the plaintiffs failed to support claims they suffered injury from the advertisers’ use of tracking cookies under the Stored Communications Act. Additionally, the court ruled that the users failed to show damages suffered under the federal Computer Fraud and Abuse Act.

However, the plaintiffs petitioned the U.S. Supreme Court to reverse the Third Circuit’s decision, stating as web browsers they meet requirements covered by the SCA and should therefore be protected against third-party cookies.

In 2014, the case was partially reinstated by the Third Circuit panel in a decision finding that Google’s cookie tracking methods could be construed as deceptive.

In April 2014, online advertising provider PointRoll, a subsidiary of the Gannet media company, settled claims in this litigation.

The plaintiffs are represented by Brian R. Strange of Strange & Butler, James Frickleton of Bartimus Frickleton & Robertson PC, and Stephen G. Grygiel of Silverman Thompson Slutkin White, among others.

The Google Web User Tracking Class Action Lawsuit is In Re Google Inc. Cookie Placement Consumer Privacy Litigation, Case No. 1:12-md-02358, in the U.S. District Court for the District of Delaware.

UPDATE: On Aug. 29, 2016, a group of consumers urged a federal court to preliminary approve a $5.5 million settlement that would resolve allegations Google circumvented plaintiffs’ web browsers and defeated the default cookie settings in violations of federal and state laws.

UPDATE 2: The Google cookie tracking class action settlement is now open. See how your rights may be affected here.

UPDATE 3: On Dec. 20, 2016, an objector to Google’s $5.5 million class action settlement says the funds should go to Class Members, not third-party organizations.

UPDATE 4: On Aug. 6, 2019, a $5.5 million settlement resolving allegations that Google circumvented users’ privacy to secretly track their online activity was rejected the Third Circuit Court of Appeals.

UPDATE 5: On Jan. 3, 2020, Google users argued that a revised $5.5 million Google privacy class action settlement should be approved after the original settlement was dismissed by an appeals court.