Google has committed to investing $500 million (approximately Rs. 4,273 crore) over the next decade to enhance its compliance framework, finalizing a settlement regarding shareholder lawsuits that claim the company engaged in antitrust misconduct, according to settlement documents.
The initial settlement, concerning derivative lawsuits directed at executives of Google’s parent company Alphabet—such as CEO Sundar Pichai, as well as co-founders Sergey Brin and Larry Page—was submitted on Friday.
This agreement is subject to the approval of US District Judge Rita Lin in San Francisco.
Among the key changes outlined in the settlement is the establishment of a dedicated board committee to oversee risk and compliance, a role that had previously fallen under the Alphabet board’s audit and compliance committee.
Additionally, Alphabet plans to configure a committee at the senior vice president level focused on regulatory and compliance matters, which will report directly to Pichai. Furthermore, a new compliance committee will be formed, comprising managers from Google’s product teams and internal compliance specialists.
Despite agreeing to the settlement, Google maintains that it has not engaged in any illegal activities.
“Over the years, we have devoted substantial resources to building robust compliance processes,” the company stated on Monday. “To avoid protracted litigation we’re happy to make these commitments,” it added.
Shareholders, led by two pension funds from Michigan, alleged that Google’s executives and board members failed in their fiduciary duties by placing the company at risk of antitrust actions linked to its search, advertising technology, Android, and app distribution operations.
The lawyers representing the shareholders emphasized that these reforms, which are unusual in shareholder derivative suits, represent a thorough reformation of Alphabet’s compliance operations and indicate a necessary shift in the corporate culture.
The agreed-upon measures must be maintained for a minimum of four years, and the shareholders will not receive any direct compensation.
Patrick Coughlin, an attorney for the shareholders, described the settlement as one of the largest efforts by a corporation to fund regulatory compliance committees in a recent interview.
“We didn’t see the board receiving the comprehensive reports it should have regarding antitrust risks,” he stated. “There were actions it could have taken, and should have taken, much earlier.”
This settlement revelation coincided with a hearing held by US District Judge Amit Mehta in Washington, who previously determined that Google violated federal antitrust laws to retain its search dominance. Mehta is expected to make a ruling by August, with the US Department of Justice suggesting that Google be required to divest its Chrome browser and provide search data to competitors.
In derivative lawsuits, shareholders take legal action on behalf of the company against its officials.
The shareholders’ legal team plans to request up to $80 million (around Rs. 683 crore) for their legal fees and expenses, in addition to the $500 million settlement figure.
The case is titled In re: Alphabet Inc Shareholder Derivative Litigation, filed in the US District Court for the Northern District of California under case number 21-09388.
© Thomson Reuters 2025
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