Oracle To Pay $115 Million To Settle Consumer Privacy Lawsuit

Oracle To Pay $115 Million To Settle Consumer Privacy Lawsuit

Representing the plaintiffs, law firm Lieff Cabraser Heimann & Bernstein might seek up to $28.75 million in fees

American multinational computer technology company, Oracle has agreed to pay $115 million to settle a lawsuit. The database software and cloud computing company has been accused of invading people's privacy by collecting their personal information and selling it to third parties.

In the Katz-Lacabe et al v. Oracle America Inc case, a preliminary settlement of the proposed class action was filed and required the approval of the judge.

Having no connection to Oracle, the plaintiffs accused the company of violating the federal and state privacy laws and the Constitution of California by creating unauthorized ‘digital dossiers’ for millions of people. They alleged that the records contained data from online browsing, banking details, buying gas, dining out, shopping and using their credit cards.

Oracle then allegedly sold the information directly to marketers or through products such as ID Graph, which according to the company helps marketers ‘orchestrate a relevant, personalized experience for each individual’.

However, Oracle denied the accusations.

The settlement covered people whose personal information Oracle collected or sold since 19 August 2018.

As part of the settlement, the Austin, Texas-based company agreed not to gather user-generated information from URLs of previously visited websites, or text entered in online forms other than on Oracle's websites by the users.

The plaintiffs included privacy rights activist Michael Katz-Lacabe and University of Maryland professor Jennifer Golbeck, who specializes in social media and privacy.

Lieff Cabraser Heimann & Bernstein, representing the plaintiffs, may seek up to $28.75 million from the settlement for legal fees.