Google Commits $500 Million to Strengthen Compliance in Shareholder Settlement

Google has agreed to invest $500 million over the next decade to revamp its compliance and oversight structure, settling a shareholder lawsuit that accused company leadership of failing to prevent antitrust violations. The litigation, filed against executives of Alphabet Inc.—including CEO Sundar Pichai and co-founders Larry Page and Sergey Brin—alleged they breached fiduciary duties by exposing the company to regulatory risks tied to its core businesses like Search, Android, Ad Tech, and app distribution.

Under the preliminary settlement, Alphabet will create a standalone board-level committee dedicated to risk and compliance oversight, separating this responsibility from the company’s audit and compliance committee. Additionally, a new senior vice president–level regulatory committee will report directly to the CEO, and a compliance committee composed of internal experts and product team leaders will be formed. These reforms are required to remain in place for at least four years.

The plaintiffs, led by Michigan-based pension funds, will not receive financial compensation. However, their attorneys are expected to seek up to $80 million in legal fees. The agreement, which still requires court approval, marks a significant internal shift at Google and is being described by shareholders’ attorneys as a rare and meaningful compliance overhaul in the context of derivative litigation.

The settlement emerged just as another major antitrust case against Google is reaching a critical point. U.S. District Judge Amit Mehta, who previously found Google violated federal antitrust law to maintain search dominance, is considering remedies proposed by the Department of Justice—including forcing the company to divest its Chrome browser and share search data. His ruling is expected by August.