-Source-Reuters-
U.S. Supreme Court justices, in an internet privacy case involving Google(GOOGL.O), disagreed on Wednesday over whether to rein in a form of settlement in class action lawsuits that awards money to charities and other third parties instead of to people affected by the alleged wrongdoing.
The $8.5 million Google settlement was challenged by an official at a Washington-based conservative think tank, and some of the court’s conservative justices during an hour of arguments in the case shared his concerns about potential abuses in these awards, including excessive fees going to plaintiffs’ lawyers.
Some of the liberal justices emphasized that such settlements can funnel money to good use in instances in which dividing the money among large numbers of plaintiffs would result in negligible per-person payments. Conservatives hold a 5-4 majority on the high court.
The case began when a California resident named Paloma Gaos filed a proposed class action lawsuit in 2010 in San Jose federal court claiming Google’s search protocols violated federal privacy law by disclosing users’ search terms to other websites. Google is part of Alphabet Inc.
A lower court upheld the settlement the company agreed to pay in 2013 to resolve the claims. Read more