Google Challenges $217 Million Legal Fee Demand in Privacy Case

A long-running lawsuit over Google’s alleged covert tracking of millions of internet users has reached a critical juncture, as a federal judge in California weighs a contentious request for legal fees. According to Reuters, the legal teams involved in the case are seeking a substantial $217 million from Google, following a settlement that requires the company to update its privacy practices and delete extensive user data.

The lawsuit, initiated by the law firms Boies Schiller Flexner, Morgan & Morgan, and Susman Godfrey, centers on claims that Google tracked users who activated “incognito” or “private” modes in their browsers. The proposed settlement doesn’t include monetary compensation for affected consumers, which has led to a heated dispute over attorney fees. Per Reuters, the plaintiffs’ attorneys argue that the privacy reforms Google has agreed to are worth billions to users, and they are seeking fees that reflect the significance of this outcome.

Google, however, disputes the requested amount and has asked U.S. District Judge Yvonne Gonzalez Rogers to limit the fees to $40 million, describing the attorneys’ bid as excessive. In a statement, the company labeled the fee request as an attempt by the law firms to profit from a settlement that provided no direct financial benefit to consumers. As Reuters reported, Google denies any wrongdoing related to privacy violations in the case.

Class action settlements often don’t include direct financial payouts, and legal experts cited by Reuters explained that determining the value of non-monetary settlements can be tricky. In this case, the lawyers representing the plaintiffs argue that the changes Google has agreed to make are worth between $3 billion and $6 billion.

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During a recent hearing, Judge Rogers acknowledged that while the plaintiffs’ teams had not fully succeeded, given that they didn’t secure damages, the settlement was still noteworthy. According to Reuters, Rogers also questioned the hourly rates charged by the plaintiffs’ legal teams, expressing concern that fees of $667 an hour for document review might be excessive.

David Boies, the chairman of Boies Schiller Flexner, defended the high fees, emphasizing that the case was particularly complex. Boies also pushed back against Google’s criticism of long working hours logged by some of the plaintiffs’ attorneys, noting that such practices are common among corporate defense lawyers.

Boies Schiller’s portion of the potential legal fees is significant. According to a Reuters analysis, the firm stands to receive about $73 million if the full request is approved. This would further bolster what has already been a lucrative year for the firm, which recently received a $667 million legal fee as part of a large antitrust settlement with Blue Cross Blue Shield.

As the case moves forward, another legal development looms. Plaintiffs who brought a similar privacy lawsuit against Google in California state court are seeking to intervene in the federal case. After their request was rejected by Judge Rogers, they are now appealing the decision to the 9th U.S. Circuit Court of Appeals.

Judge Rogers has yet to announce when she will make a final decision on the fee dispute or on the broader settlement. The outcome could set a precedent for how courts calculate attorney fees in cases that result in significant privacy reforms but no financial compensation for consumers.

Source: Reuters