Google Click Fraud Settlement Finalized
An Arkansas judge approved Google’s $90 million click fraud settlement that we reported on earlier this year. In February of 2005, AdWords advertiser Lane’s Gifts brought a class action suit against Google, alleging that Google wasn’t doing enough to protect its advertising clients against click fraud.
In March of 2006, Google offered a $90 million dollar settlement package. Lawyers for the plaintiffs argued that the proposed settlement was inadequate and filed a suit to block it. But now, after a two day hearing in July, the judge approved it, calling the proposed settlement “fair, reasonable, and adequate.” As a result, Google will pay $30 million in legal fees to the plaintiffs and $60 million in AdWords credits as reimbursement for money lost due to fraudulent clicks. Google will send out notices to its advertisers that they have 30 days to opt out of the settlement.
“We’re pleased Judge Griffin has affirmed the settlement as appropriate and fair to advertisers. We look forward to continuing to manage invalid clicks effectively and provide our advertisers with an outstanding return on their investment,” said Nicole Wong, Google’s associate general counsel in a statement. The class settlement covers all AdWords advertisers.
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