Google (GOOGL) maintains that a multi-billion pound lawsuit which alleges that it tracked millions of Apple (AAPL) iPhone users, is not viable, and thus should not proceed. The company’s lawyer Antony White told the Supreme Court that the lawsuit could only seek compensation under English laws if claimants suffered damages as a result of the data breach, reports Reuters.
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Richard Lloyd, a former director of the consumer rights group Which?, is leading the landmark claim against the tech giant. According to Reuters, the lawsuit seeks to ascertain the kind of damages that could be recovered for data breaches and whether a class action would be the correct avenue to pursue. Lloyd and his team are pushing for a redress of more than £3 billion should the trial succeed. The class-action lawsuit focuses on more than five million people who used iPhones between 2011 and 2012.
“Google makes billions of pounds in revenue from advertising based on our personal data every year,” Lloyd said in a statement. “It is only right that they should be held to account for profiting from the misuse of that personal data.” (See Alphabet stock analysis on TipRanks).
The outcome of the lawsuit could have severe ramifications on other tech giants. Facebook (FB), TikTok, and YouTube are some of the other companies that could be hit with similar data protection claims.
Alphabet’s solid first-quarter financial results has caught the attention of Monness Crespi Hardt analyst Brian White. According to the analyst, the company is well-positioned to capitalize on the digital ad rebound.
White stated, “We believe Alphabet is well positioned for a continued recovery in digital ad spending in 2021; however, we anticipate antitrust investigations to carry on with great fanfare.”
The analyst has reiterated a Buy rating on the stock with a $3,000 price target implying 27.17% upside potential to current levels.
Wall Street is optimistic about Alphabet’s prospects. Consensus among analysts is a Strong Buy based on 35 Buy ratings and 1 Hold recommendation. The average analyst price target of $2,700.23 implies 14.5% upside potential to current levels.
GOOGL scores a 9 out of 10 on TipRanks’ Smart Score rating system, implying its performance is likely to outperform market expectations.
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