Judge Caps Legal Fees in Google Privacy Settlement
The court limited attorney hourly rates to $1,600, preserving more of the $68 million settlement for class members.
Updated on Oct. 16, 2026 in Financial Planning
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A federal judge approved $22.6 million in legal fees for a $68 million Google privacy class action settlement. The court decision also imposed a $1,600 hourly rate cap on plaintiffs' lawyers, rejecting proposed rates as high as $3,000.
Why it matters
The ruling highlights increasing judicial scrutiny over legal billing practices as hourly rates at large firms rose by an average of 7% in 2025. This decision impacts how settlement funds are distributed and sets a potential benchmark for attorney fee awards in high-stakes class actions.
The court approved $22.6 million in total legal fees, representing 33% of the $68 million Google privacy settlement fund. The presiding judge capped attorney billing at $1,600 per hour, effectively slashing proposed rates from top lawyers that reached as high as $3,000.
The players
Beth Labson Freeman
The federal judge in San Jose, California, who oversaw the Google privacy settlement and regulated attorney fee awards.
A technology company that reached a $68 million settlement to resolve class action claims regarding its advertising and data practices.
David Scott
A lead attorney whose proposed hourly billing rate was reduced from $3,000 to $1,600 by the court.
Daryl Scott
An attorney involved in the case whose initial hourly rate of $1,960 was lowered as part of the fee review process.
The details
The court reviewed billing entries for the lawsuit, which resolved claims that Google Assistant recorded private conversations for targeted advertising. Judge Beth Labson Freeman labeled the $3,000 hourly rate request as patently unreasonable, specifically lowering rates for attorneys including David Scott and Daryl Scott. By applying the $1,600 cap, the court adjusted the compensation for hours worked, such as the 64 hours billed by David Scott, which resulted in a court-approved $194,100 fee.
Timeline
Large US law firm hourly rates grew by an average of 7% in 2025.
Plaintiffs submitted their fee request in July 2026.
The judge approved the settlement fees and criticized billing rates during the week of October 15, 2026.
Money Landscape
This decision occurs against the backdrop of a 7% average growth in hourly rates at large US law firms in 2025. The ruling signals a shift toward stricter judicial oversight as litigation costs continue to rise faster than other consumer service sectors.
When participating in a class action lawsuit, monitor the public court filings regarding legal fee requests to understand how much of a settlement fund may be diverted to attorneys. If you have questions about how settlements affect your potential recovery, speak with a financial or tax professional.
The takeaway
Judicial caps on attorney billing can significantly impact the net funds available for distribution to individual class members. Review court notices carefully to understand the fee structure in any class action suit you may be eligible to join.
Further reading
For more information on managing legal costs and class action outcomes, visit Financial Planning.
Source note: This article includes information reported by Reuters.
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