Oklahoma Law Enforcement Retirement System Sues Alphabet Directors for Breach of Fiduciary Duty Over Privacy Violations
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A verified stockholder derivative complaint filed in California alleges Alphabet's board ignored a long history of regulatory actions and internal red flags while continuing to violate user privacy laws.
The Oklahoma Law Enforcement Retirement System filed a verified stockholder derivative complaint against the directors and officers of Alphabet Inc. in the U.S. District Court for the Northern District of California. The lawsuit, Oklahoma Law Enforcement Retirement System v. Page, names Larry Page, Sergey Brin, Sundar Pichai, and several other board members as defendants. The complaint, first reported by CourtListener, alleges that the board presided over a "long history of civil and regulatory actions" and failed to implement controls to ensure compliance with consumer privacy laws. The filing covers documented privacy failures ranging from reading users' emails to the illegal tracking of children. ## A Pattern of Privacy Failures
The filing outlines a timeline of privacy violations that the plaintiffs argue put the board on notice. This includes Google's early practice of reading user emails and the scraping of private information from homeowners' WiFi networks. The complaint also cites the promotion of Google Buzz, which resulted in sanctions for violating privacy laws. According to the documents, Alphabet's board ignored these red flags. Instead of correcting course, the company expanded its illegal practices. The complaint notes that Google's treatment of children under 13 on YouTube resulted in record-setting penalties. It also highlights more than $2 billion in costs stemming from actions taken by State Attorneys General regarding illegal location tracking and misrepresentations about "Incognito Mode."
Financial Toll of Oversight Failures
The lawsuit asserts that data privacy is mission-critical for Alphabet, yet the board failed to exercise its oversight duties. The filing claims this negligence has cost the company billions of dollars in fines, penalties, settlements, and judgments. Specific financial damages cited include a $350 million settlement for concealing material privacy breaches from stockholders and more than €600 million in French regulatory penalties for violating European privacy requirements. The complaint alleges the board's decision to ignore illegal practices continues to jeopardize the company's stability and growth opportunities. ## Alleged Ongoing Misconduct
Beyond past settlements, the complaint identifies newer practices that have drawn regulatory scrutiny. These include allegations that Google shares private information of U.S. users with foreign entities in violation of federal law. The filing also claims Google broke promises to protect location privacy related to reproductive health and failed to notify users of government demands for their data. Despite recognizing that data protection is central to the business, the plaintiffs argue the Audit Committee and the full Board of Directors provided only the appearance of oversight while the underlying violations persisted through 2020, 2021, and 2022. The case, number 5:26-cv-10809, seeks to hold the individual directors and officers accountable for what the plaintiffs describe as a systemic failure to protect both users and stockholders.