Google, Flo Health Settle Privacy Lawsuit; Meta Found Liable in Data Sharing Case

Technology Sector Faces Heightened Scrutiny Over Data Privacy Practices

U.S. equities are reacting to significant legal developments within the Technology Sector, as major firms address allegations of user data privacy violations. Google LLC (a unit of Alphabet - GOOGL) and Flo Health Inc. have agreed to pay a combined $56 million to settle a class-action lawsuit. In a related proceeding, Meta Platforms (META), parent of Facebook and Instagram, was found liable by a jury on similar grounds.

Details of the Privacy Settlement and Jury Verdict

The settlements, filed in the U.S. District Court for the Northern District of California, resolve claims that Google and Flo Health unlawfully shared sensitive personal health information, including menstrual and pregnancy data, with third parties for targeted advertising. The lawsuit alleged violations of the California Invasion of Privacy Act and the California Confidentiality of Medical Information Act. Google will establish a $48 million fund, and Flo Health will pay $8 million. Both companies denied wrongdoing as part of their respective agreements, which are subject to approval by U.S. District Judge James Donato.

The class action, brought by Flo app users, specifically focused on data sharing that occurred between November 1, 2016, and February 28, 2019. Flurry, a now-defunct mobile analytics company, previously settled for $3.5 million in March, bringing the total settlement fund across all parties to $59.5 million.

Crucially, Meta Platforms did not settle the claims against it. After a two-week trial, a jury found Meta liable on August 4, 2025, for violating the California Invasion of Privacy Act by collecting information from Flo app users without their consent. A hearing to consider damages against Meta is scheduled for September 30, 2025, and the company is expected to appeal the verdict.

Limited Immediate Market Impact on Major Tech Equities

The immediate market reaction for Alphabet (GOOGL) and Meta Platforms (META) shares has been contained. While the $48 million settlement represents a direct cash outflow for Alphabet, its financial impact is relatively small when viewed against the company's considerable scale. As of September 15, 2025, **Alphabet