Alphabet receives preliminary court approval for shareholder lawsuit settlement

Alphabet Inc. (NASDAQ:GOOGL), the $2.25 trillion technology giant and prominent player in the Interactive Media & Services industry, announced that on July 8, 2025, the United States District Court for the Northern District of California granted preliminary approval for the settlement of a stockholder derivative action, according to a press release statement based on its latest SEC filing. According to InvestingPro data, the company maintains exceptional financial health with strong cash flows and minimal debt exposure.

The case, titled In re Alphabet Inc. Shareholder Derivative Litigation, Consolidated Case No. 3:21-cv-09388-RFL, involves claims brought by shareholders on behalf of the company. As part of the court’s preliminary approval, Alphabet is required to publish a Notice of Pendency and Proposed Settlement of Derivative Action (WA:ACT), which has been made available as an exhibit to the filing and on the company’s investor relations website.

The settlement agreement, referred to as the Stipulation and Agreement of Settlement, outlines the terms under which the parties have agreed to resolve the litigation, pending final court approval. The defendants in the case, which include current and former Alphabet officers and directors, deny any liability in connection with the claims alleged in the action.

Alphabet’s filing lists its Class A Common Stock and Class C Capital Stock as registered on the Nasdaq Stock Market LLC under the symbols GOOGL and GOOG, respectively.

No further financial details or terms of the settlement were disclosed in the filing. The company stated it is complying with the court’s order to notify shareholders about the proposed settlement.

This information is based on a press release statement included in Alphabet’s Form 8-K filed with the Securities and Exchange Commission.

In other recent news, Alphabet’s upcoming earnings report has prompted various analysts to adjust their projections. BofA Securities has increased its revenue and earnings estimates for Alphabet, expecting second-quarter revenue of $81 billion and earnings per share of $2.21, slightly above Street consensus. KeyBanc Capital Markets anticipates even stronger results, with a revenue forecast of $94.6 billion driven by Search, YouTube, and Cloud services. Both firms have raised their price targets for Alphabet, with BofA setting it at $210 and KeyBanc at $215, reflecting optimism in Alphabet’s business momentum. Cantor Fitzgerald also increased its price target to $196, citing strong performance in core search and YouTube businesses, although it maintains a Neutral rating due to ongoing antitrust challenges.

Additionally, Alphabet’s Waymo is expanding its self-driving service in Austin, Texas, from 37 to 90 square miles. This expansion aims to bolster Waymo’s competitive edge against rivals like Tesla (NASDAQ:TSLA). In related developments, Google has introduced new AI capabilities to its Search platform with the Gemini 2.5 Pro model, offering advanced reasoning and research tools to users. These features are initially available to AI Pro and AI Ultra subscribers. These recent developments underscore Alphabet’s ongoing efforts in AI and autonomous vehicle technology, positioning the company for potential growth in these sectors.

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