Google has reached a settlement on a class-action suit regarding its Buzz social-networking feature.

The company agreed to pay $8.5 million, which – after attorneys' fees and expenses are covered – will be donated to Internet privacy and education organizations.

The case dates back to February, when two law firms filed suit against Google in California district court on behalf of 24-year-old Harvard Law School student Eva Hibnick. "They opted me into this social network and I didn't want it," she said at the time.

Google introduced Buzz in February. It added a "news feed" feature to Gmail and was also incorporated into Google's mobile offering on Android phones and the iPhone. Amidst concerns over what information was displayed publicly, however, Google soon tweaked Buzz to give user more control over their settings. This did not appease all users, however, and a class-action suit was born.

According to court filings, Google held a formal meeting at its headquarters April 21 with attorneys from the opposing side. After a day-long discussion about Buzz and the class members' concerns, both sides agreed to a formal mediation. They met again on June 2 and after a 14-hour discussion, agreed on a settlement.

The agreement is three-fold. First, it acknowledges that Google has made the appropriate changes to Buzz, and privacy threats no longer exist.

Second, it requires Google to be more active in its Buzz-related public education efforts. The plaintiffs will be able to submit recommendations to Google about what it feels should be done, but Google will craft its own response and submit the formal plan to the court within 90 days.

Finally, Google will create an $8.5 million settlement fund, which – after fees – will go toward "existing organizations focused on Internet privacy policy or privacy education."

The settlement was announced the same day Google said it will simplify its privacy policies, effective October. 3.