Google to cover $190 million in legal fees in Texas privacy-settlement deal

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Tech giant Google LLC, a subsidiary of Alphabet Inc., has agreed to pay $190 million in legal fees to several Texas-based law firms as part of a broader $1.375 billion privacy settlement with the State of Texas. This payout marks one of the largest state-led privacy settlements in U.S. history and highlights the growing scrutiny over how major technology companies handle consumer data.

Historic Payout to Private Counsel

The payment will go to a group of private law firms that worked alongside the Texas Attorney General’s Office in pursuing privacy-related claims against Google. According to court filings made public on Thursday, the firms involved include Norton Rose Fulbright, one of Texas’s largest international law firms, as well as Crenshaw, Dupree & Milam, and Cotton Bledsoe Tighe & Dawson, both based in the state.

Under their fee agreement, Norton Rose Fulbright could bill up to $3,780 per hour or take 27% of the total recovery—whichever figure is smaller. This arrangement reflects a contingency-based structure commonly used in complex litigation involving state governments and corporate defendants.

  

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In addition to the payments to outside firms, Google will also pay approximately $71 million to the Texas Attorney General’s Office to cover the costs incurred by its internal legal team during the investigation and litigation.

Texas’ Lawsuit Against Google

The underlying lawsuit, filed in 2022 by Texas Attorney General Ken Paxton, accused Google of multiple violations of state privacy and consumer protection laws. According to the complaint, Google allegedly collected and stored biometric identifiers, such as facial geometry and voiceprints, without obtaining the informed consent of Texas residents.

The suit also claimed that Google tracked users’ locations even when users had disabled the “Location History” feature, effectively misleading consumers about how their personal data was being collected and used. Another major component of the case centered on Google’s “Incognito” mode, which the state alleged gave users a false sense of privacy, as the company continued to gather certain forms of data even when users believed they were browsing anonymously.

While Google has consistently denied any wrongdoing, the company opted to settle the case to “resolve old claims and move forward,” according to a company spokesperson. The settlement resolves several overlapping lawsuits related to data privacy practices that have dogged the tech company across multiple states and federal jurisdictions.

Broader Context: Tech Industry Accountability

Texas’s privacy case against Google represents a broader trend among U.S. states to hold major technology corporations accountable for alleged privacy violations and deceptive data practices. Over the last decade, companies like Meta Platforms (Facebook), Amazon, and Apple have faced similar probes into their use of consumer data.

Attorney General Ken Paxton—known for his aggressive litigation stance against big tech firms—hailed the settlement as a victory for consumer privacy and a message that “no company, no matter how large, is above the law.” Paxton’s office emphasized that the settlement funds will benefit Texas consumers, while the significant attorney fee allocation underscores the extensive legal work required to secure the agreement.

The inclusion of private law firms in the case reflects a growing practice among state attorneys general to partner with outside counsel in high-stakes litigation. This strategy allows states to leverage specialized expertise and resources that government offices may not always have internally, particularly in cases involving complex technological and privacy issues.

A Pattern of State Partnerships with Private Firms

Texas’s collaboration with Norton Rose Fulbright and its co-counsel mirrors a pattern seen in other major state-led cases. For example, Texas has retained private firms in its antitrust lawsuit against investment managers such as BlackRock, Vanguard, and State Street, over alleged coordination on environmental, social, and governance (ESG) investment practices.

Critics, however, have raised concerns about the substantial legal fees awarded to private counsel in such cases. Opponents argue that contingency-based payouts—especially those approaching hundreds of millions of dollars—could incentivize firms to pursue aggressive settlements. Supporters, on the other hand, maintain that these partnerships ensure states can effectively take on multinational corporations with vast financial and legal resources.

Google’s Response and Broader Implications

In response to the Texas settlement, Google reiterated that the company has made significant changes to its data practices in recent years. “We’ve long since updated many of the product policies and practices at issue,” a spokesperson said. The company emphasized that it continues to prioritize transparency and user control over privacy settings.

Google also noted that the agreement does not constitute an admission of guilt or liability. Instead, the company framed the deal as an opportunity to bring closure to a multi-year dispute and focus on improving user privacy protections going forward.

Still, the settlement’s scale—both in total payout and legal fees—could signal heightened financial risk for tech giants facing state-led privacy litigation. Legal experts suggest that the case may embolden other states to pursue similar actions, particularly where privacy laws overlap with biometric data collection or location tracking.

Looking Ahead

The $1.375 billion settlement is among the largest of its kind involving a single state and a technology company. Combined with the $190 million in attorney fees and $71 million in internal costs, the deal highlights the high price companies may pay to resolve allegations of privacy violations.

For Texas, the outcome represents both a legal and political victory. It showcases the state’s willingness to take on one of the world’s most powerful corporations and its ability to secure meaningful financial redress. For the legal industry, it underscores the growing role of private law firms in shaping the future of privacy enforcement and digital accountability in the United States.

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