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In a significant development, U.S. District Judge James Donato in San Francisco has given the green light to a substantial $26 million payout to plaintiffs’ attorneys. This follows their successful negotiation of a landmark $90 million cash settlement for Android software developers who had accused Alphabet’s Google (GOOGL.O) of anti-competitive practices within its Play app store.
Settlement Approval and Payment Details
The approval from Judge Donato on Thursday encompasses the settlement agreement and the allocation of the $26 million payout to plaintiffs’ firms, including notable names such as Hagens Berman Sobol Shapiro, Sperling & Slater, and Hausfeld.
As part of the settlement, Google has committed to maintaining a reduced 15% service fee for app developers on their initial $1 million annual revenue until May 2025. Additionally, Google has revised its developer distribution agreement.
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Coordinated Antitrust Legal Proceeding
This case is part of a broader coordinated antitrust legal proceeding challenging Google’s Play store practices. In a related legal battle, Google faced a jury trial in December against Epic Games, the maker of “Fortnite,” resulting in a loss for Google. Epic Games is seeking a court order to overhaul Play Store policies, and Google has expressed its intention to appeal the verdict or request a new trial.
State and Consumer Settlement
In a separate but related case, states and consumers settled with Google last month, amounting to $700 million. As part of this agreement, Google committed to revamping its Play Store practices. The state and consumer plaintiffs had alleged that Google overcharged them through unnecessary fees and imposed restrictions on app distribution.
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Google’s Response and Future Legal Proceedings
Despite the approved settlement, Google has not immediately responded to requests for comment. The tech giant maintains its stance, denying any wrongdoing. In light of the recent developments, Google is expected to seek a review of the verdict or request a new trial in the Epic Games case.
Plaintiffs’ Attorneys and Compensation
Steve Berman, one of the plaintiffs’ attorneys, highlighted that Judge Donato’s order allows them to distribute the settlement to the affected class. He emphasized that the reduced commission secured through the settlement will benefit developers.
The plaintiffs’ attorneys outlined in a filing that they had invested significant resources, both financially and in terms of time, into the litigation. They disclosed an out-of-pocket expenditure of millions of dollars and 34,000 hours devoted to the case. Judge Donato deemed the attorney fees reasonable, constituting about 24% of the $112 million settlement deal, which includes the $90 million cash fund and $22 million in savings for developers through various reforms.
The court stated that the attorney compensation aligns with a “non-binding and informal guideline” allowing a fee award of up to 25%, considering the intricacies of the case.
The plaintiffs’ attorneys anticipate that some class members will receive payments exceeding $200,000, while hundreds are expected to receive more than $20,000.
In a separate case involving consumers and states, another set of plaintiffs’ lawyers has indicated an intention to request up to $122.8 million in legal fees as part of Google’s $700 million settlement. Judge Donato is yet to approve this separate deal.
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