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Google $90M Click Fraud Settlement Draws Fire
By Ben Charny

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Blog Post: Anecdotal evidence suggests thousands of Google advertisers will object to Google's proposed payment $90 million settlement.

There's anecdotal evidence suggesting hundreds, maybe even thousands, of Google advertisers will object to Google's proposed payment of $90 million to settle a click fraud, class action lawsuit in Arkansas, according to an attorney involved in the case.

The exact numbers won't be known until sometime around June 15 or so. That's when a 30-day period ends for Google advertisers to opt out of the settlement announced in early March.

The month-long clock starts ticking on Monday, when Google is expected to begin formally notifying advertisers of the settlement.

The hubbub is over a lawsuit filed in a Texarkana, Ark. circuit court by local retailer Lane's Gifts & Collectibles, which was a Google advertiser.

The firm accused Google and other top Internet firms of improperly charging advertisers. The suit is a class action representing any Google advertiser from 2002 and beyond.

The litigation seeks compensation for click fraud, which loosely-defined is when marketers, spammers or other black hats artificially inflate the number of times a Web site ad was clicked upon, thus improperly inflating Google's ad revenues. Advertiser pay Google a fee everytime their ad is clicked upon.

Meanwhile, Google executives have claimed as recently as April 10 that click fraud isn't a problem at Google.

Google's proposed settlement was announced by the company in late April. Since then, there's been a flurry of protest over it.

Attorney Brian Kabateck, who is representing another business suing Google for click fraud in California, went so far as to issue a press release back in April to make his objections know about the $90 million settlement.

The attorney says the amount of the settlement, compared to how much Google allegedly overcharged advertisers, doesn't work out to anywhere near enough of a payment per advertiser. Some have been allegedly overpaying by tens of thousands of dollars, but will only get a few hundred dollars back as a result of the settlement.

The $90 million is "manifestly deceptive in size, scope and effect," the firm wrote in a letter to the judge that was the subject of news reports three weeks ago.

Since then, Kabateck said his office has received hundreds of calls and emails from Google advertisers  requesting information on opting out of the Arkansas settlement.

Also, traffic has been relatively heavy at a Web site set-up in order to disseminate form letters advertisers could use to both opt out and to make their unease about the settlement known to Circuit Court Judge Joe Griffin, who has approved the settlement.

This all leads Kabateck to conclude the number of those objecting is "going to be a sizable amount," perhaps in the thousands.

It remains to be seen, however, if that's enough to force a change of heart by Griffin.




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