Google agrees to settle click fraud suit for $90 million

Published on .

Mar 9, 2006

Mountain View, Calif.—Google has agreed to settle a click fraud class-action lawsuit for $90 million.

The settlement still needs to be approved by the judge in the case, according to Nicole Wong, associate general counsel for Google, who posted news about the settlement in Google’s blog Wednesday afternoon.

Lane’s Gifts & Collectibles filed the lawsuit in Arkansas in February 2005.

Under the agreement, Google will allow all advertisers to notify the search engine company of any clicks they believe were invalid dating back to 2002, when it first launched its cost-per-click advertising. Normally, advertisers have 60 days to dispute clicks with Google.

Google will issue these advertisers credits towards new advertising. The total amount of credits, plus attorneys’ fees, will be capped at $90 million.

“We’ve been discussing the case with the plaintiffs for some time and have recently come to an agreement with them which we believe is a good outcome for everyone involved,” Wong wrote.

Other click fraud suits against Google are pending, including one filed last August in California by CLRB Hanson Industries.

—Carol Krol



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