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Judge to weigh Google click-fraud deal

2006-07-24 09:50:00

An Arkansas judge begins weighing objections this week to a $90 million class-action settlement between Internet search leader Google Inc. and advertisers who say they were victims of "click fraud."

Circuit Judge Joe Griffin has given preliminary approval to the settlement in the case against the search engine company, but at least 51 objections have been lodged over the agreement.

The two-day hearing begins Monday. Under the $90 million settlement — of which a third will be awarded to lawyers — thousands of advertisers worldwide will have a $60 million fund against which they can file a claim. No one will receive cash. Instead, the advertisers will receive advertising credits for future use with Google.

Lane's Gifts and Collectibles of Texarkana filed the lawsuit last year, alleging Google improperly charged advertisers for fraudulent Web site clicks that drove up advertising bills.

Advertisers say Google charged them for each click by a potential consumer that the advertisers allege were actually swindlers or mischief makers who repeatedly clicked on a link without a legitimate interest in the product or service.

Clicking on the ads, typically displayed at the top and sides of Web pages, triggered sales commissions even if the activity didn't lead to a sale. Click fraud cropped up several years ago as a way to drain advertising budgets or funnel illicit revenue to Web sites that belong to Google's network.

An independent report filed in court last week said that while Google appears to be doing reasonably well protecting advertisers from scam artists preying upon Internet advertisers, it remains unclear how much the system is being bilked under the ruse.

Since 2001, the ads have generated nearly $16 billion in revenue for Google and its partners, turning the Mountain View, Calif.-based company into one of the world's most prized businesses.

In the lawsuit, some advertisers have said the settlement shifts the burden of proof to class members because they'd have to certify the number of bogus clicks.

Google's attorneys have said the settlement is fair.

Quantum Art Announces Visual Studio Integration for .NET Developers Building CM
Quantum Art, a leading developer of content management and web publishing software, today announced a combined release of QP7.4, its award-winning content application server, and a Microsoft Visual Studio integration module.
Sony to launch a new wireless handheld
Hoping to tap into the growth of wireless networks across college campuses, other public spaces and within homes, Sony Corp (NYSE:SNE - news). will announce Tuesday a new pocket-sized gadget for instant messaging and other Internet-based communications.
Apple previews Leopard operating system
Apple Computer showcased its Leopard operating system, due out next year, to the cheers of software developers gathered for a major conference.
VMware Touts Mac Virtual Machine
VMware on Monday announced virtual machine software for the Mac that will run any x86 operating system -- including Windows, Linux, and Solaris -- beside Apple Corp.'s Mac OS X.
Web Hosting Company Host Color Offers Free Website Marketing Consultation
Host Color, a global shared web hosting provider, announced today it offers "Free Marketing Consultation" to all customers who sign-up or renew their Mega and Multi Domain web hosting plans in August. The promotional offer saves at least $49 to anyone who needs to get advice on web site marketing.
lynda.com Releases Search Engine Optimization
lynda.com, the company specializing in self-paced career and computer training in digital media and design, introduced a new title today: Search Engine Optimization with Richard John Jenkins.
Microsoft releases 12 security fixes
Microsoft Corp. on Tuesday released 12 security fixes for its Windows operating system and Office business software.
Skype Goes Mobile With iSkoot
Skype will help market an application that will put its contact list and VoIP (voice over Internet protocol) and instant messaging services on high-end mobile phones.
AOL To Offer Personal Email Domains
AOL on Wednesday said it would start offering next month personalized email domains at no charge.
IBM to buy FileNet for $1.6 billion
IBM Corp. took another step to build out its software portfolio Thursday by announcing a $1.6 billion acquisition of FileNet Corp., a maker of software which helps companies route data through business applications.


   
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