A federal judge’s rejection of a $700 million settlement, produced by Alphabet Inc.’s Google, gives warning to defendants in their strategy involving class action deals. A federal judge in California rebuked a deal with US states and consumers who claimed that the Google Play app store abused market power. The proposed settlement paid out $127 million to consumers, many of whom would only get about $2, and its provisions essentially released the Google Play Store from any legal claims for seven years.
Judge Eduardo Robreno, partner at McCarter & English, stated that in an era of strict antitrust enforcement under the Biden administration, companies should be thinking even harder about the terms of their agreements. “It isn’t just a matter of submitting a piece of paper and getting the judge to approve it,” said Robreno, who as a federal judge in 2023 rejected Google’s proposal for $5.5 million class settlement in a separate case related to the company’s web browser privacy settings.
Companies need to “be able to defend it, and be sure we can say with a straight face that it’s fair and adequate,” Robreno added.