In a recent development, a leading technology corporation has agreed to settle a contentious class-action lawsuit by paying $62M, after allegations of unauthorized location tracking on their smartphones. The lawsuit claims that the company stored users’ private location data even when they had explicitly opted out of such tracking.
The motion for preliminary approval of the proposed Class Action Settlement Agreement and Release was filed on September 14, 2023 in the U.S. District Court of the Northern District of California, San Jose Division. This public record provides all details of that event.
A considerable portion of the settlement fund would be utilized to offset the costs of the notice and other associated expenses. The remaining amount, post deductions, will be disbursed among the affected users.
Legal professionals speculate this outcome could potentially influence how technology firms approach data privacy and user consent in the future. However, while this does mark a significant victory for privacy advocates, it should be noted that corporates have, in past instances, managed to mitigate similar payouts without any significant shifts in their strategy.
This is demonstrative of the increasing scrutiny that tech firms are under, particularly with regards to their handling of personal data. And though the fine is substantial, it represents a relatively small fraction of their total revenue, which may not be sufficient to motivate significant changes in their procedures.
At the time of this report, the tech company has not released an official statement regarding this matter. As the details regarding this case continue to unfold, legal professionals are expected to remain sharply invested in the matter and future corporate data privacy lawsuits. The evolving relationship between big tech, user data, and the law continues to be of great interest to the global legal community.