118.5 million dollar settlement between google and its advertisers

[Andrew Shaw]

An Arkansas judge has approved a $US90 million ($A118.5 million) settlement between Google and its advertisers who claimed the internet's leading search engine improperly billed them for "clicks" that didn't lead to genuine customers seeking their products.

Miller County Circuit Judge Joe Griffin called the settlement "fair, reasonable and adequate." More than 70 objections were filed, with smaller companies saying they didn't have the resources to research claims that Google engaged in "click fraud" to drive up ad costs.

By settling claims made in the plaintiffs' class-action lawsuit, Google will give advertising credits that are the equivalent of a $US4.50 ($A5.92) refund on every $US1,000 ($A1,320) spent in its ad network during the past four years.

No one will receive cash except the lawyers, who will split $US30 million ($A39.5 million).

Some of the plaintiffs went before Griffin on Monday to argue that Google had not taken reasonable care to prevent click fraud and overstated the steps it has taken against would-be swindlers.

Clicking on the ads, typically displayed at the top and sides of web pages, triggered sales commissions for Google even if the activity didn't lead to a sale. Click fraud drives up advertisers' costs by falsely indicating the number of web users who have "clicked" on an internet ad.

A Texarkana company - Lane's Gifts and Collectibles - filed the lawsuit, which Griffin certified as a class action.

© 2006 AP DIGITAL

http://www.theage.com.au/news/World/...816348076.html

[007]

No one will receive cash except the lawyers, who will split $US30 million ($A39.5 million).

That's just great... So really this whole lawsuit didn't really do much for us AdWords users except possibly make Google a little more careful to catch fraudulent clicks..

Would have been nice to at least get some AdWords credit or something. They got off REALLY easy on this. In the long run it will be good for advertisers, but I bet other AdWords users are going to be just a little annoyed to learn that all of the money went to the lawyers...

[denny007]

If I understand corectly every advertiser will get credit $4.50 per every $1K spent...? WOuld be nice to get $xxx for doing nothing

[Malaysia]

0.45% rebate for all advertisers...for future use..hahha