Alphabet Inc., the parent company of Google, has settled a shareholder derivative litigation through a proposed settlement agreement. The settlement arises from allegations of breaches of fiduciary duties against certain officers and directors of the company, relating to antitrust investigations and enforcement actions by the Department of Justice and state attorneys general, as well as other related civil litigation.
The proposed settlement, authorized by the United States District Court for the Northern District of California, involves a stipulation and agreement entered into by Alphabet Inc., the Co-Lead Plaintiffs, and the Individual Defendants. The settlement is subject to a hearing scheduled for September 30, 2025.
The litigation, which was brought on behalf of and for the benefit of the company, alleged that Alphabet's board of directors and certain senior executives failed to properly oversee or caused the company to pursue anticompetitive business practices, exposing the company to the risk of liability under U.S. antitrust law in connection with its search, Ad Tech, and Android mobile operating system and app distribution businesses.
The settlement negotiation process involved the review of internal documents produced by Alphabet in response to shareholder inspection demands, including non-privileged board materials and documents related to antitrust investigations and litigations. Additionally, multiple in-person mediations were conducted under the guidance of a retired Chief Judge of the United States District Court.
As a result of the settlement, the benefits will go to Alphabet, and individual Alphabet stockholders will not receive any direct payment from the settlement. The hearing on September 30, 2025, will determine whether the terms of the settlement are fair, reasonable, and in the best interests of Alphabet and its stockholders.
The settlement marks a significant development in the shareholder derivative litigation against Alphabet Inc., and the upcoming hearing will play a crucial role in finalizing the resolution of the legal matters. As a result of these announcements, the company's shares have moved 0.81% on the market, and are now trading at a price of $185.06. Check out the company's full 8-K submission here.
