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Google to Settle in Click Fraud Case
By Ben Charny

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Updated: The search engine says it plans to settle a class action lawsuit alleging that it conspired with competitors to inflate advertising rates. No word from Yahoo, another defendant.

Google says it has nearly settled a class action lawsuit alleging that the search engine charges inflated advertising rates because of rampant click fraud.

The search engine Ask, formerly known as Ask Jeeves, believes it, too, is covered under the proposed settlement, a spokesperson said.

Lawsuit defendant Yahoo plans to continue battling the accusations.

"We stand firmly by our proprietary click protection system, and look forward to vigorously defending our position in this matter," Yahoo said in response to news of Google's settlement.

The fate of other defendants is still unknown.

News of the pending settlement, announced March 8, could spur a spate of similar lawsuits filed by other Internet advertisers, and it may force Google's co-defendants to settle their part in the case.

Also, the proposed settlement casts a new spotlight on click fraud and its very costly ramifications for some of the Internet's biggest firms.

The Google settlement isn't official until approved by the court where the suit is filed, the company said.

Read more here about the fight against click fraud.

But once settled, Google plans to field click fraud complaints from any advertiser dating back to 2002, when Google began charging advertisers based on the number of times an Internet browser displayed their ad, Google General Counsel Nicole Wong writes.

Editor's Note: This story was updated to include comments Yahoo and Ask, defendants in the lawsuit.

Read the full story on eWEEK.com: Google to Settle in Click Fraud Case


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