Google shareholder sues board over payout to executive

A Google shareholder is suing the internet giant’s founders and the board of directors for its parent company Alphabet over a $90 million severance payout made to an executive who was pushed out amid allegations of sexual misconduct.

The lawsuit alleges that co-founders Larry Page and Sergey Brin, along with the rest of the board of directors, participated in a “multi-year scheme to cover up sexual harassment and discrimination at Alphabet,” Google’s parent company.

The New York Times first reported the 2014 payout to Andy Rubin, the father of the Android mobile operating system in October, after an investigation found allegations that he had coerced a Google employee into performing oral sex on him to be credible.

The report set off an internal firestorm that led to more than 20,000 Google employees staging a mass walkout at company offices around the world in a demonstration against the internet search giant’s handling of sexual misconduct.

Thursday’s lawsuit is the first shareholder lawsuit against the company over the Rubin debacle. It was filed by shareholder James Martin and alleges that the board failed in its duties by covering up the Rubin incident.