Judge to re-examine Google click fraud settlement

By Steve Malone

Posted on 25 Jul 2006 at 10:10

A judge is to decide whether to re-open the case against Google over alleged negligence in tackling click fraud. Judge Joe Griffin, sitting in Arkansas, is to hear a number of plaintiffs object to the proposed settlement in which Google has offered $90m in 'free' AdWords advertising and payment of legal fees.

The case began when Lane's Gifts and Collectibles of Texarkana filed the lawsuit last year, alleging Google improperly charged advertisers for fraudulent website clicks.

Last week an independent investigator found that Google's approach to click fraud was 'reasonable'. However 50 companies of those involved in the class action against Google disagree. They say that Google has not done enough to protect them from click fraud and the current system throws too much of the burden onto advertisers to 'prove' they are victims of click fraud.

The plaintiffs also complain that the proposed compensation offered is insufficient. Of the $90 million on the table, it is estimated that around a third will be swallowed in legal fees.