$115 Million Payout: Oracle Ends User Data Privacy Battle
Oracle has agreed to pay $115 million to settle a two-year class-action lawsuit regarding the improper use of user data. The settlement provides compensation for 220 million affected users.
Oracle will contribute $115 million to an irrevocable fund, which will be evenly distributed among the settlement group members. Additionally, the company has committed to ceasing the collection of certain types of electronic communications and implementing an audit program to ensure its clients comply with contractual data protection obligations.
The plaintiffs initiated an investigation into Oracle’s data privacy practices in 2020. The investigation included the analysis of publicly available data, such as complaints from client organizations and government regulators, academic articles, news reports, books, web pages, marketing materials, privacy policies, and disclosure policies.
The plaintiffs also obtained Offline Access Request Reports (OARRR) from Oracle, which played a crucial role in the proceedings. After consulting with experts who conducted investigations and analyzed Oracle’s public technical documentation, the plaintiffs filed the lawsuit in August 2022.
The lawsuit alleged that Oracle’s data-selling activities violated Internet users’ right to privacy under the California Constitution, as well as various federal and state data protection laws. In April, the court dismissed claims brought under Florida laws and the Federal Wiretap Act, paving the way for the current settlement. Oracle has yet to provide comments.
