Google agreed to spend $ 500 million over 10 years to regulate its compliance structure, to solve the shareholder judicial cases by accusing the search engine company of antitrust violation, the repayment documents show.
Preliminary resolution of the so -called derivative trial against Google Parent Alphabet officials, including Chief Executive Sundar Pichai and Google Co -founders Sergey Brin and Larry Page, rose late on Friday.
Requires approval from American District Judge Rita Lin in San Francisco.
Changes include the creation of an independent board committee to oversee the risk and compliance, previously the responsibility of the Audit Committee and the alphabet board compliance.
The alphabet would also create a high -level chairman’s high -level committee to address regulatory and compliance issues, reporting to Pichai, and a Compliance Committee consisting of Google Product Managers and internal compliance experts.
Google denied the wrongdoing to agree to solve.
“Over the years, we have devoted significant resources for building strong compliance processes,” Mountain View, California -based California said Monday. “To avoid prolonged court cases, we are happy to make these commitments.”
Shareholders led by two Michigan pension funds accused Google leaders and directors of violating their trust tasks by exposing the company to antitrust responsibility for its research, advertising, Android technology and apps.
“These reforms, rarely achieved in the derivative actions of shareholders, constitute a comprehensive adjustment of the alphabet compliance function,” resulting in “changes in culture with deep roots,” said shareholders’ lawyers.
Changes must remain in the country at least four years. Shareholders would not be paid.
Patrick Coughlin, a lawyer for shareholders, in a Monday interview called the solution one of the largest by a company to finance regulatory compliance committees.
“We didn’t see the board get the full reports it should have received about the risks of the antitrust,” he said. “There are things he could have done, and he should have done, earlier.”
The settlement was discovered on the same day the Judge of the American District Amit Mehta in Washington, who last August discovered Google violated the federal law of antitrust to maintain the search prevailing, completed a session to consider how to address the monopoly.
Mehta plans to rule until August. The Justice Department has proposed that Google sell his browser Chrome and share search data with rivals.
In a derivative lawsuit, the shareholders sue officials on behalf of a company.
Shareholders’ lawyers plan to demand up to $ 80 million for legal tariffs and expenses, tops $ 500 million.
The case is in the cloud: Inc Alphabet of shareholder derivative process, US District Court, Northern Count of California, no. 21-09388.
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