Alphabet Board Again Beats Investors' Child Privacy Suit

By Lauren Berg (April 7, 2022, 10:57 PM EDT) -- A California federal judge on Thursday again tossed Alphabet investors' derivative suit accusing the board of directors of knowingly collecting kids' online data on YouTube in violation of the Children's Online Privacy Protection Act.

U.S. District Judge Richard Seeborg in a nine-page order granted Google parent Alphabet's motion to dismiss, finding that the investors haven't established demand futility — the standard shareholders must meet to file a derivative suit without first taking their complaints to the company's board — by demonstrating that any of the company's directors stood to gain a personal benefit from the alleged COPPA violation.

The investors argue...

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