Back to top

Image: Bigstock

Alphabet Owned Google Faces Lawsuit from Former Employee

Read MoreHide Full Article

A former product manager at Alphabet Inc. (GOOGL - Free Report) has reportedly filed a complaint against Google claiming he was fired on unfair grounds.

A class action lawsuit filed by a California labor law firm with the state court in San Francisco refers to the Google employee as John Doe and alleges that Google’s policies violate labor laws, which permit employees to protect themselves by sharing information with outsiders and the press.

News website The Information, which first reported the news, said the plaintiff is a former Nest employee, another Alphabet subsidiary, and is the same person who filed a federal-level complaint against both Google and Nest in May with the National Labor Relations Board (NLRB).

The Long List of Allegations

Doe’s suit alleges that Google’s employment agreement bars employees from sharing information with each other, with spouses, friends, government agencies and the press.

The suit also alleges that Google employees are prohibited from revealing salaries and compensation to a potential employer. They are also prohibited from revealing skills, knowledge, acquaintances and experience to a new employer.

The plaintiff has stated in the lawsuit that Google blocks workers’ voices through illegal surveillance. It runs a program called “Stopleaks” that requires workers to mole on each other and report disclosure of information.

Google’s Response

Google has denied all the allegations stating that they are baseless. A Google spokesman stated “Our employee confidentiality requirements are designed to protect proprietary business information, while not preventing employees from disclosing information about terms and conditions of employment, or workplace concerns.”

ALPHABET INC-A Net Income (TTM)

Shares of Alphabet have been steadily treading higher on a year-to-date basis. The stock generated a return of 4.07% compared with the Zacks Internet Services industry’s gain of 3.53%.

To Conclude

If the court finds the fired employee’s claims to be fair, Google might have to re-hire him and pay him back wages. Not only this, Google and other tech companies like Facebook , Microsoft (MSFT - Free Report) and Yahoo could be forced to change their confidentiality rules and media policies.

Zacks Rank

Alphabet currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks' Top Investment Ideas for Long-Term Profit

How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Microsoft Corporation (MSFT) - free report >>

Alphabet Inc. (GOOGL) - free report >>

Published in