I would expect that no script would be loaded from google analytics/tag manager domains once I turn it on. But this is obviously not the case.
The article is too vague to actually understand more about what this lawsuit is but regarding:
Google tracks and collects consumer browsing history and other web activity data no matter what safeguards consumers undertake to protect their data privacy," reads the complaint. The search giant surreptitiously collects data through Google Analytics, Google Ad Manager, website plug-ins and other applications, including mobile apps, according to the complaint.
They are right. Google is doing that.
I think that incognito mode was mentioned due to this statement: safeguards consumers undertake to protect their data privacy.
They will probably build the case that they tried to protect themselfs but google was still tracking them.
And if chrome is sending to google servers flag that user has turned on incognito mode (which I bet they are/did), then they are having a serious problem.
"Poor user, this little girl with cute blue eyes, tried to protect itself from invasion of her privacy, they knew that but were still tracking her"
If this is the case they will have to pay or bribe the judge.
The law firm that is behind it is specialized into class action lawsuits with crew of around 300 lawyers so I expect a good show. I hope google wont settle outside the court.