Ooohh ... that's got to hurt. Maybe not in terms of cash ... but this has probably dented their status for being technology innovators and privacy protectors.

"Google has proposed paying $8.5m (£5.5m) to settle a lawsuit brought over its Buzz social network. Launched in February, Buzz enrolled all Gmail users into a social network based around their contacts. The service was criticised because users initially had relatively little control over who could see their network of contacts.

Several Gmail users took Google to court over Buzz saying the network violated personal privacy. The lump sum is at the centre of Google's proposed settlement of the legal case, of which 30% will be used to pay legal fees, the seven Gmail users who brought the case will get $2,500 each and the remainder will be shared among organisations that promote online privacy."

Source: BBC