Google has agreed to pay $135 million to settle allegations that its Android operating system collected cellular data from users without permission, even when location tracking was disabled and apps were closed, in what lawyers believe is the largest payout in a conversion case.

The preliminary settlement, filed on Tuesday in San Jose, California, covers anyone who used an Android device since 12th November 2017. Reuters reported that payments will be capped at $100 per person, though the settlement requires court approval before any money changes hands.

The class action lawsuit accused Google of programming Android to automatically collect cellular data purchased by users from mobile carriers. According to Reuters, plaintiffs alleged the data collection continued even when users locked their screens, disabled location sharing or closed Google applications entirely.

Lawyers representing the plaintiffs argued the practice constituted conversion, a legal claim that arises when one party wrongfully takes another's property with intent to assert control. Glen Summers, representing the claimants, told the court he believed the $135 million figure represents the largest settlement ever reached in such a case.

Google denied any wrongdoing whilst agreeing to the terms. "We are pleased to resolve this case, which mischaracterised standard industry practices that keep Android safe," spokesperson José Castañeda told CNET. "We're providing additional disclosures to give people more information about how our services work."

Under the settlement terms, Google will obtain explicit consent from Android users during initial device setup before transferring data. The company will also introduce a toggle button allowing users to disable certain data collection activities and will disclose data transfers more clearly in its Google Play terms of service.

The plaintiffs' legal team may seek up to $39.8 million in fees, representing 29.5 per cent of the settlement fund, Reuters reported. A trial had been scheduled for August before the settlement was reached.

Class members who wish to claim compensation will need to have joined the lawsuit before the settlement was filed. Reuters noted that most class action cases require individuals to sign up to participate, meaning those who did not register for the case are unlikely to receive any payment.

The agreement follows another Google settlement announced earlier this week. The company agreed to pay $68 million to resolve claims that its Assistant feature recorded users without activation, leading to targeted advertising based on information users had not willingly shared.

---