Despite attempts by a former advertiser to block it and amid criticism of its terms, the $90 million class action settlement of click fraud claims against Google has been approved.
"Miller County Circuit Judge Joe Griffin called the settlement "fair, reasonable and adequate" and downplayed claims it hurt small advertisers. More than 70 objections were filed, with smaller companies saying they didn't have the resources to prove "click fraud" losses.
By settling claims made in the plaintiffs' class-action lawsuit, Google will give advertising credits that are the equivalent of a $3.80 refund on every $1,000 spent in its advertising network during the past 4 1/2 years.
No one will receive cash except the lawyers, who will split $30 million."
The fact that the advertisers, who are presumably the injured parties in this action, will receive only a small advertising credit while the attorneys representing the class will split an eight-figure legal fee has been one of the many criticisms leveled at the settlement. Critics also argue that the settlement fails to adequately compensate class members or deter similar conduct by Google and others and that it does not adequately compensate smaller advertisers who do not have the resources to prove click fraud losses.
For E-Commerce Law’s earlier posts on this topic, see Former Advertiser Attempts to Block Google Click Fraud Settlement, Google Click Fraud Settlement Granted Preliminary Approval, AIT's Click Fraud Lawsuit Against Google Stayed, and "Ninety Million Dollars is Chump Change."
For more information on this story, see Judge OKs $90M 'Click Fraud' Settlement on washingtonpost.com, Judge Approves Google's $90M Click Fraud Settlement on E-Commerce Times, and Google Click Fraud Settlement Approved on Eric Goldman’s Technology & Marketing Law Blog.