Google to spend $500 million revamping compliance in shareholder settlement - Reuters

Google to spend $500 million revamping compliance in shareholder settlement - Reuters

Google, parent company Alphabet Inc. (NASDAQ: GOOGL), has agreed to invest $500 million over 10 years to overhaul its compliance structure as part of a shareholder settlement. The preliminary settlement, filed late Friday, aims to address allegations of antitrust violations and fiduciary duty breaches by Google executives and directors. The agreement requires the creation of a standalone board committee to oversee risk and compliance, previously handled by the Alphabet board's audit and compliance committee. Additionally, a senior vice president-level committee will address regulatory and compliance issues, reporting to Chief Executive Sundar Pichai. A compliance committee consisting of Google product team managers and internal compliance experts will also be established. These reforms are expected to result in a "deeply rooted culture change," according to shareholders' lawyers [1].

The settlement, which needs approval from U.S. District Judge Rita Lin in San Francisco, follows a ruling by U.S. District Judge Amit Mehta in Washington, who found Google violated federal antitrust law to maintain dominance in search. Mehta is expected to rule by August, and the U.S. Department of Justice has proposed requiring Google to sell its Chrome browser and share search data with rivals [2].

Google denied wrongdoing in agreeing to settle, and the Mountain View, California-based company did not immediately respond to requests for comment. The shareholders' lawyers plan to seek up to $80 million for legal fees and expenses in addition to the $500 million settlement [1].

References:
[1] https://www.investing.com/news/stock-market-news/google-to-spend-500-million-revamping-compliance-in-shareholder-settlement-4076188
[2] https://m.economictimes.com/tech/technology/google-to-spend-500-million-revamping-compliance-in-shareholder-settlement/articleshow/121575434.cms