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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...ogle-fraud-case/2006/07/28/1153816348076.html
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...ogle-fraud-case/2006/07/28/1153816348076.html
