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Complaint Filed Against Googles Click-Fraud Class Action Settlement
Last week, a former Google advertiser filed a complaint to block a class-action settlement between Google and thousands of online merchants who had purchased ads through Google’s search engine since 2001, on the grounds that the settlement amount of $90 million shortchanged the class. The class action suit relates to “click-fraud” that can take many forms, but ultimately results in the billing of merchants for Internet traffic generated by persons repeatedly clicking on advertiser’s links without any intention of completing any purchases.
The complaint was brought by lawyers who had previously filed a similar click-fraud suit against Google in California. The California suit has been suspended pending the outcome of the suit in Arkansas, from which the $90 million settlement was reached. As much as $30 million of the settlement could go to a handful of lawyers who filed the Arkansas suit, and the remaining amount will go to thousands of advertisers in the form of credits.
The Arkansas court is scheduled to consider final approval of the $90 million settlement beginning on July 24. If advertisers that have supplied more than 5% of Google’s ad revenue since 2001 reject the agreement, Google, who has denied any wrongdoing, has the option to nullify the settlement.
For additional information, visit:
http://www.siliconvalley.com/mld/siliconvalley/news/editorial/14548096.htm