Stock Markets February 1, 2026

Federal Judge Refuses $2.36 Billion Disgorgement Request in Privacy Class Action Against Google

San Francisco court upholds jury findings but denies plaintiffs' bid to force large profit forfeiture and permanent injunction on ad-related data practices

By Priya Menon
Federal Judge Refuses $2.36 Billion Disgorgement Request in Privacy Class Action Against Google

A federal judge in San Francisco declined to order Alphabet Inc.'s Google to surrender $2.36 billion in alleged profits or to impose a permanent ban on certain data collection tied to advertising, affirming a jury's earlier determinations while leaving other litigation elements intact. The judge also rejected Google's bid to decertify the class of plaintiffs.

Key Points

  • A federal judge in San Francisco denied plaintiffs' request to force Google to disgorge $2.36 billion in alleged profits and to bar certain ad-related data collection practices.
  • A jury in September found Google liable for collecting app activity from users who had disabled a tracking setting and awarded about $425 million in damages, while an advisory verdict said disgorgement was unwarranted.
  • The judge also refused Google's motion to decertify the class, which encompasses 98 million users and 174 million devices; Google plans to appeal the verdict.

A federal judge in San Francisco has turned down plaintiffs' request to force Google to disgorge $2.36 billion in alleged profits and to bar specific ad-related data practices, leaving intact key elements of a civil privacy judgment against the company.

The decision follows a jury verdict in September that found Google liable for collecting app activity from millions of users who had turned off a tracking setting. That jury awarded roughly $425 million in damages to the class action plaintiffs, far less than the $31 billion the plaintiffs had sought, and issued an advisory verdict indicating that disgorgement of profits was unwarranted.

In the post-trial motion, the class sought an order requiring Google to forfeit $2.36 billion in profits that they said were derived from the company's tracking of users who had disabled a particular privacy control. The plaintiffs argued they were entitled to those profits as recovery for Google's alleged improper data collection, and they further sought a permanent injunction to halt certain practices related to advertising data.

Chief U.S. District Judge Richard Seeborg rejected those requests. He concluded the plaintiffs had not demonstrated an entitlement to disgorgement and found their calculations of Google's alleged profits to be insufficiently supported. The judge also determined that the plaintiffs had not shown prospective, irreparable harm that would justify imposing a permanent injunction to prevent Google from collecting account-related or other data tied to its ad systems.

Google had urged the court not to add the disgorgement request to the jury's September verdict. The company warned that an order barring collection of account-related data would "cripple" an analytics service used by millions of app developers, a contention referenced by the court in assessing the practical consequences of an injunction.

Separately, the judge denied Google's motion to decertify the class. The certified class includes 98 million users and 174 million devices, and Seeborg declined to undo that certification following the jury verdict.

The company has denied any wrongdoing and indicated it will appeal the September verdict. Plaintiffs noted following the ruling that Google has not altered its privacy disclosures or its data collection practices despite the jury's finding of liability.


Legal teams and case information

For the plaintiffs: David Boies and Mark Mao of Boies Schiller Flexner; Bill Carmody and Shawn Rabin of Susman Godfrey; and John Yanchunis and Ryan McGee of Morgan & Morgan.

For Google: Michael Attanasio, Benedict Hur and Simona Agnolucci of Cooley.

The case is Rodriguez v. Google LLC, U.S. District Court for the Northern District of California, No. 3:20-cv-04688.

Risks

  • Continued uncertainty over whether a disgorgement remedy could be supported in future proceedings - this affects legal outcomes for technology and advertising sectors.
  • Potential for ongoing litigation and appeals that could prolong legal and regulatory scrutiny of digital advertising and analytics practices - relevant to app developers and ad-tech firms.
  • The court found plaintiffs did not demonstrate prospective, irreparable harm needed for a permanent injunction, leaving current data collection practices potentially unchanged - a risk for consumer privacy advocates and sectors reliant on user data.

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