Google’s directors were sued by shareholders for approving a $90 million exit payment to Andy Rubin the creator of the Android mobile software while helping cover up his alleged misconduct and similar allegations by other executives.
The investors claimed the board failed in its duties by allowing harassment to occur, approving big payouts and keeping the details private. Andy Rubin ran the powerful mobile division at Google for years before leaving the company in 2014. In October, The New York Times reported that Google executives approved a four-year $90 million pay package for Rubin after an employee accused the executive of forcing her to perform oral sex on him.
In November thousands of Google employees staged a work walkout to protest the company’s approach to workplace sexual misconduct prompting management to change some of its policies.A group of Google employees behind the walkout said that they support the shareholder lawsuits.
The shareholder, James Martin is suing each of Alphabet’s current directors, a former director and several current or former executives on behalf of Alphabet itself in what is known as a shareholder derivative lawsuit.
He said,“Google and the board of directors have direct personal liability for covering up the wrongdoing and allowing it to continue for years thereby significantly harming women employees at Google.”
Google however told staff in October that it dismissed 48 people for sexual harassment in the past two years without exit packages.