Search engine giant Google is spending $8.5 million to settle a class-action lawsuit over the release of its Google Buzz social network site. The money covers attorney fees and is also being used to fund groups focused on internet privacy, according to court filings, with the proposed settlement being filed on Friday.

Google Buzz, launched in February as Google's alternative to Facebook, worried users because it made the names of users' Gmail contacts public, often without the users knowledge.

Coincidentally, the news of this settlement broke as Google stated it is about to simplify its privacy policies; making them easier to understand.

Google has come under fire for the way it handles sensitive information. Less than two weeks ago, a Google Street View car was searched in Paris over the collection of wireless data.