Investing

Google Settles Privacy Lawsuit for $5 Billion; Crude Slides to 2-Week Low

Paul Ausick

Published: December 29, 2023 9:30 am

The last trading day of 2023 got off to a flat start, with equities trading with a fraction of a point of Thursday’s closing price. Crude oil was up slightly, and bonds were essentially flat in the early going.

Google’s incognito settlement

A lawsuit filed against Alphabet Inc. (NASDAQ: GOOGL) and Google three-and-a-half years ago has reportedly been settled. On Thursday, federal district court judge Yvonne Gonzales ordered a hold on the class action lawsuit that had been set to begin on February 5. Google has reportedly agreed to pay $5 billion to settle the lawsuit.

The Brown et al. v Google LLC case, filed in June 2020, lists four counts against the company:

• Intercepting and tracking users’ communications while they were in private browsing (incognito) mode
• Failing to obtain the consent of all parties to track communications, as required by California law
• Invading users’ privacy
• Intruding in a private conversation in a way that a reasonable person would find “highly offensive”

Neither Google nor the plaintiffs have commented. Yet, Reuters reported the two sides reached an agreement on a binding term sheet after mediation. The settlement will be presented for court approval on or about February 24.

The lawsuit sought the greater of $5,000 or treble actual damages in damages for each of the “millions” of people in the class. A $5 billion settlement appears to be a bargain for Google.

Alphabet reported $120 billion in cash and other liquidity at the end of the September quarter. The company’s 12-month cash flow from operations totals $106.5 billion. Free cash flow for the 12 months was $77.6 billion.

As if to underscore the insignificance of $5 billion to Google, the stock closed down 0.1% on Thursday. It traded down by less than that in Friday’s premarket session.

Pentagon says Red Sea is safe

Crude oil prices touched a monthly high earlier this week after Yemen-based Houthi forces attacked crude tankers plying the Red Sea. The Pentagon has sought to reassure shippers that “the international community is there to help with safe passage” through the Suez Canal and the Red Sea. (The future ships and submarines of the U.S. Navy.)

It has taken a while for the message to get through, but it finally happened on Thursday. International benchmark Brent crude traded at more than $81 a barrel on Tuesday and fell to around $77 a barrel early Friday morning. West Texas Intermediate (WTI) has slipped from a Tuesday high of more than $76 a barrel to around $72.

Bloomberg reported Thursday that a U.S. guided missile destroyer shot down a missile and a drone over the southern Red Sea. U.S. Central Command said late Thursday that there was “no damage to any of the 18 ships in the area or reported injuries.”

About half the tankers and container ships that would normally travel through the Suez Canal have recently chosen to make the more expensive trip around the southern tip of Africa. That change, in turn, could cause oil and other goods prices to rise.