Settlement Overview

Texas Attorney General Ken Paxton revealed a significant preliminary settlement agreement with Google, amounting to $1.4 billion. This landmark deal addresses allegations of privacy infringements initiated by the state in 2022.

Details of the Allegations

The lawsuit accused Google of unlawfully tracking user data, which included sensitive information such as geolocation, incognito browsing history, and biometric data. Paxton emphasized that this settlement represents a “historic win” for the data privacy rights of Texans.

Implications of the Settlement

“In Texas, Big Tech is not above the law,” Paxton stated, asserting that the settlement reflects the state’s commitment to protecting its residents from privacy violations. He further noted that Google had previously tracked individuals’ movements and personal data without consent.

While the settlement is a significant financial victory, Paxton’s announcement did not specify whether it would compel Google to alter its business practices regarding data collection.

Context of Previous Settlements

This agreement marks the second substantial legal victory for Texas against a major tech company within a year. In 2024, the state settled with Meta, acquiring a similar $1.4 billion settlement concerning unauthorized collection of facial recognition data from residents.

Legal Representation and Fees

The Texas Attorney General’s office utilized outside legal representation for both legal battles. For the Google lawsuit, the firm Norton Rose Fulbright was retained, operating under a contingent fee structure. This means the firm would receive payment only upon a favorable outcome for Texas.

The financial framework for this arrangement includes options for calculation based on billable hours multiplied by a factor of four, or a percentage of the settlement amount—ranging from 10% to 27% depending on the contract terms. Should the $1.4 billion settlement be finalized, the firm could earn between $137 million and $371 million.

Further Insights

While Google and Meta have both provided financial support to The Texas Tribune, the organization clarifies that such contributions do not influence its journalistic integrity or reporting.