Oracle Corporation has agreed to pay $115 million to settle a class-action lawsuit alleging the company unlawfully tracked individuals’ online and offline activities and then violated their privacy by selling that information to third parties.
As one of the largest tech companies in the U.S., Oracle’s software plays a critical role behind the scenes in various industries. Banks rely on Oracle’s systems to manage customer databases and financial transactions, hospitals store patient records using Oracle’s technology, and retail businesses utilize it for inventory management and sales operations.
According to the lawsuit, Oracle functioned as a global data broker, allegedly building a network that tracked and indefinitely recorded the personal information of hundreds of millions of people. This information included both online behavior, such as web browsing history, and offline activities, such as in-store purchases and geolocation data.
Allegations of a ‘Virtual Panopticon’
The lawsuit claims Oracle’s operations gave the company unprecedented access to personal information, creating what it referred to as a “virtual panopticon.” This allowed Oracle to track everything about individuals that could be digitized, from their residential addresses and purchasing habits to the media they consumed and the opinions they held.
It further alleges that Oracle profited from selling this personal information to other companies, all without the consent of those affected. Most people, the lawsuit argues, have no direct relationship with Oracle and are often unaware that their personal data is being collected, let alone sold.
While Oracle denies any wrongdoing, it has agreed to settle the claims for $115 million. A vast number of Americans could be eligible for compensation under the terms of the settlement.
Who Can File a Claim?
Individuals are eligible for a portion of the settlement if they lived in the United States at any time since August 19, 2018, and had their personal data collected by Oracle Advertising technologies. This includes data acquired, captured, or sold via Oracle’s products or services, such as ID Graph or Data Marketplace.
Because it can be difficult for individuals to know if they were affected, some people have already been notified via email from the Katz-Lacabe v. Oracle Settlement Administrator, which included a notice ID and confirmation code. However, receiving such an email is not necessary to file a claim. Those interested can submit their name, address, and contact information through an online form. Once validated, payments will be issued through methods such as prepaid debit cards, direct deposit, Venmo, or Zelle.
The deadline for filing claims is October 17, 11:59 p.m. Pacific Time.
What Are the Potential Payment Amounts?
The exact amount each claimant will receive remains unclear, as it depends on the number of claims filed. Before disbursement, attorneys’ fees, which could amount to $28.75 million, and administrative costs will be deducted from the $115 million settlement. The remaining funds will be distributed equally among all validated claimants.
No payments will be made until the settlement is granted final court approval, with the approval hearing scheduled for November 14. Potential appeals or objections could further delay the payout process.
While Oracle continues to deny any wrongdoing, this settlement marks one of the latest in a series of high-profile cases highlighting the increasing scrutiny around data privacy and the practices of tech companies handling personal information.