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Alphabet Inc (NASDAQ: GOOG, GOOGL), the parent company settled a shareholder lawsuit alleging that it mishandled sexual misconduct allegations by its top executives. 

In a blog post, Google's Vice President of People Operation Eileen Naughton announced the settlement.

Alphabet pledges to reform Google’s culture 

Under the settlement, Alphabet committed to sweeping reform and new transparency at Google. The tech giant agreed to implement five guiding principles and a list of detailed changes to its workplace policies and practices.

It included $310 million in funding to create a DEI Advisory and promote diversity, equity, and inclusion in the workplace. The Advisory Council will be composed of outside experts including for Judge Nancy Gertner, former EEOC Commissioner Fred Alvarez, and employment lawyer Grace Speights as well as internal leaders, including Google CEO Sundar Pichai.

Additionally, the settlement assured employees and shareholders that anyone who is fired or under investigation for any type of misconduct will not receive their severance package or change their stock sale plans. A specialist team will be assigned to investigate allegations against any executive and will report its findings to the audit committee of the company's Board.

Furthermore, Alphabet will no longer force employees to settle disputes through arbitration.

“This settlement will not only change and improve the culture at Google, but it will set the standard for culture change at tech companies throughout Silicon Valley,” said Ann Ravel, an attorney from Renne Public Law Group that led parts of the settlement negotiation.

The changes, some of which have already been implemented at Google, will extend to all of Alphabet’s divisions worldwide.

MeToo comes to Google

In 2018, thousands of Google employees from Tokyo, Singapore, New York, London, Seattle, and at the Googleplex corporate headquarters in San Francisco staged employee walkouts. The “Me Too” era was in full swing and shining a light on male-dominated Silicon Valley.

The walkout was triggered by a New York Times article alleging that Android creator Andy Rubin received a $90 million severance package when he was being investigated for sexual misconduct with subordinates and improper relationships.

After the walkout, shareholder lawsuits were filed and in 2019, Google started its own board investigation of the company's culture and how the misconduct of executives is handled.

In January, Alphabet chief legal counsel, David Drummond left without a severance package, in the midst of public accusations of inappropriate relationships with employees. Although no reason was given for his exit, Drummond was reportedly under scrutiny in the board’s ongoing investigation.

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