Judge Caps Attorney Rates in Google Privacy Settlement

A federal judge approved $22.6 million in legal fees while rejecting hourly billing rates as patently unreasonable.

Updated on Oct. 16, 2026 in Financial Planning

Judge Caps Attorney Rates in Google Privacy Settlement

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Judge Beth Labson Freeman has approved a $22.6 million legal fee award for a $68 million Google privacy settlement. The ruling included a stern rejection of requested hourly billing rates, imposing a $1,600 cap on lawyers involved in the case.

Why it matters

The decision highlights judicial pushback against skyrocketing legal billing rates in class action litigation. By capping hourly fees at $1,600, the court is seeking to balance reasonable compensation for attorneys with the rights of the settlement class.

The court approved $22.6 million in fees, representing 33% of the total settlement fund. Judge Freeman rejected a proposed $3,000 hourly rate, capping it at $1,600 despite large law firm rates growing by an average of 7% in 2025.

The players

Beth Labson Freeman

She is a U.S. District Judge for the Northern District of California who presides over complex class action litigation.

Google

This global technology company provides internet-related services and products, including the Google Assistant voice-activated software.

David Scott

He is an attorney who billed 64 hours for the litigation and faced a reduction in his proposed hourly billing rate.

The details

The settlement resolves allegations that Google Assistant recorded private conversations for targeted advertising, though Google denied any wrongdoing. Lawyers had requested higher compensation based on rates reaching up to $3,000 per hour, but the court deemed these requests excessive during the fee calculation review.

Large US law firm hourly rates grew by 7% during 2025.
Scott + Scott firm submitted its initial fee request in July 2026.
Judge Freeman approved the settlement fees during the week of October 15, 2026.

Market Dynamics

This ruling counters the 7% growth in large US law firm hourly rates recorded in 2025. It suggests that courts are increasingly sensitive to inflationary billing practices in an era where top lawyer rates have reached $4,000 per hour.

The ruling ensures that a larger portion of the $68 million settlement fund is preserved for the class members rather than being depleted by legal costs. It signals that retail investors and plaintiffs can expect higher scrutiny of legal expenses in future class action settlements.

The takeaway

Courts are increasingly scrutinizing legal billing practices to protect settlement funds from excessive overhead. Readers should be aware that high professional fees in class action cases are not guaranteed and are subject to judicial reasonableness tests.