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Google Settles Buzz Lawsuit For $8.5 Million

Google has settled a class action lawsuit brought against the company over the launch of its Buzz Gmail service for $8.5 million.

Tech news site The Register reports that federal district court judge James Ware had given preliminary approval to the proposed settlement on 7 October.

Under the settlement, Google will set-up an $8.5 million fund focused on distributing monetary rewards to organisations that champion internet privacy and privacy education.

Google specified that no users will receive any monetary compensation form the settlement.

"Just to be clear, this is not a settlement in which people who use Gmail can file to receive compensation, the company said in an e-mail to Gmail users.

Google was slammed by both the US government and Gmail users alike when its Buzz social networking tool automatically revealed users' most e-mailed Gmail contacts across the internet.

The company said: “We have always been committed to offering users transparency and choice in Buzz and all our products, and will continue to work together with users to provide the best experience possible.”