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Google Close to Settling in Click Fraud Case
Posted March 9, 2006
Google Close to Settling in Click Fraud Case
Posted March 9, 2006
The news off the wire states that this is now a done deal.
it had agreed to pay up to $90 million to settle a class action lawsuit over advertising fraud by outside parties on its site, in a bid to put the controversy behind it.
The settlement stems from a lawsuit filed by Lane's Gifts earlier this year in an Arkansas state court and is designed to settle all outstanding claims against Google for fraud committed using its pay-per-click ad system back to 2002, it said.
The $90 million would involve legal fees and credits rather than any cash payments to all advertisers who apply to be part of the class settlement, once the judge certifies the agreement, Google spokesman Steve Langdon said.
$90 million is less than a week's worth of revenue for Google. Click Fraud is going to happen, it is just part of life - as is employee theft at a business. Unlike Yahoo! who never credits your account because of click fraud, Google at least makes an effort. About every other month we see a credit. We have NEVER seen a credit from Yahoo!, even when we have shown them the log files that show the fraud.
Google's stock will take a hit due to investors will get nervous, but Google will stay solid and a trusted partner to online advertisers.
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