With this, yet another tech giant has closed the book on the fallout with Trump stemming from the Jan. 6 Capitol riots in 2021.
Alphabet, Inc. (GOOGL) (GOOG) shares are likely to draw some attention after the company’s video-streaming platform, YouTube, reached a $24.5 million agreement to settle the lawsuit filed over the cancellation of President Donald Trump’s account following the Jan. 6, 2021, Capitol riots.
Alphabet’s Class A stock, which fell 0.14% in the after-hours session, was last seen trading up 0.14% in overnight trading, according to Yahoo Finance.
Trump had brought the lawsuit against social media platforms, including Alphabet’s YouTube, after they suspended his accounts in light of the unsavory incidents that occurred following the violence on Capitol Hill over the propriety of President Joe Biden’s win in the 2020 election. Trump had alleged that the companies were acting under pressure from his enemies, including Congressional Democrats.
In a three-page filing, the U.S. District Court of the Northern District of California stated on Monday that the settlement “shall not constitute an admission of liability or fault on the part of the Defendants or their agents, servants, or employees, and is entered into by all Parties for the sole purpose of compromising disputed claims and avoiding the expenses and risks of further litigation.”
The court deemed that Alphabet shall transfer the total amount to the trust account of Trump’s attorney, John Coale, with $22 million to be paid to Trump and the remaining $2.5 million to his group of supporters, including the American Conservative Union and author Naomi Wolf.
Alphabet is the latest tech company to settle a litigation with the president. Meta Platforms, Inc. agreed to a $25 million settlement in January, followed by X, formerly known as Twitter, in February. X, now owned by Elon Musk, agreed to pay $10 million. The buckling of the social media giants has occurred despite legal experts previously opining that Trump’s lawsuit may not stand due to First Amendment protection.
On Stocktwits, retail sentiment toward Alphabet stock remained largely unchanged from depressed levels. The sentiment meter read 37/100, suggesting a ‘bearish’ mood by late Monday. The message volume remained ‘low,’ although recovering from the ‘extremely low’ chatter found the day before.
Alphabet stock has gained 30% year-to-date.
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