Jan 28 (Reuters) - Google will pay $135 million to settle a proposed class action by smartphone users who accused Google of programming its Android operating system to collect their cellular data without permission.
A preliminary settlement with the Alphabet unit was filed late Tuesday night in the San Jose, California, federal court, and requires a judge's approval.
Google denied wrongdoing in agreeing to the settlement, which covers users of Android-powered mobile devices since November 12, 2017.
Users said Google needlessly collected cellular data, which they purchased from mobile carriers, even when they closed Google's apps, disabled location-sharing or locked their screens.
They said the data supported Google's product development and targeted advertising campaigns and amounted to "conversion," when a party wrongfully takes another party's property with the intent to assert control.
As part of the settlement, Google will not transfer data without obtaining consent fromAndroid users when they set up their phones.
The Mountain View, California-based company will also make it easier for users to stop the transfers by toggling, and will disclose the transfers in its Google Play terms of service.
Glen Summers, a lawyer for the plaintiffs, said in a court filing he believed the $135 million payout is the largest ever in a conversion case.Payments are capped at $100 per class member.A damages expert for the plaintiffs estimated that potential damages could have reached $1.05 billion.
The lawsuit began in November 2020.A trial had been scheduled for August 5.
"We are pleased to resolve this case, which mischaracterized standard industry practices that keep Android safe," Google spokesperson Jose Castaneda said in an email. "We're providing additional disclosures to give people more information about how our services work."
The plaintiffs' lawyers may seek up to $39.8 million, or 29.5% of the settlement fund, for legal fees.
(Reporting by Jonathan Stempel in New York. Editing by Andrea Ricci and Mark Potter)
