Google (NASDAQ: GOOG) Pays out $8.5 Million to Settle Lawsuits related to Google Buzz

Google (NASDAQ: GOOG) has agreed to pay $8.5 million to settle a lawsuit that was spawned by several privacy mistakes during the launch of its Google Buzz social network.

When Google (NASDAQ: GOOG) launched Buzz in February, it automatically included frequent Gmail contacts on people’s Buzz profiles public. The company was heavily criticized by the technology press and Google quickly made changes to give users better clarity about privacy settings, but those actions didn’t prevent lawsuits related to the leakage of private information such as one filed by Eva Hibnick back in February.

The settlement money will be donated to unspecified privacy groups according to a copy of the settlement which was made available on Friday. Google will also be required to “undertake wider public education about the privacy aspects of Buzz.” There were no specifics in the settlement related to what steps Google would have to take, but said that it would have to notify all Gmail users that it has reached a settlement.

Google Inc. maintains an index of Websites and other online content, and makes this information freely available through its search engine to anyone with an Internet connection. The Company’s automated search technology helps people obtain nearly instant access to relevant information from its online index. The Company generates revenue primarily by delivering online advertising. Businesses use its AdWords program to promote their products and services with targeted advertising. In addition, the thousands of third-party Websites that comprise the Google Network use its AdSense program to deliver relevant ads that generate revenue and enhance the user experience. In September 2009, the Company acquired ReCAPTCHA Inc., a spin-off of Carnegie Mellon University’s Computer Science Department. In February 2010, it acquired Aardvark. In February 2010, it acquired On2 Technologies, Inc. In August 2010, it acquired Slide, a social technology company. In August 2010, it acquired Angstro.

Shares of Google (NASDAQ: GOOG) traded up 1.54% on Friday, ending the week at $470.30.

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