Google Click-Fraud Settlement under Fire
A former Google advertiser is suing to block the proposed $90 million settlement between Google and search marketers who claim they’ve been victims of click fraud in the AdWords program.
Joseph A. Kinney, a North Carolina security expert who operates the Web site SafeSpaces.com, brought suit in the same Arkansas state court in which Lane’s Gifts and Collectibles sued Google, Yahoo!, LookSmart, Lycos, Miva and other search engines in a class action suit for charging advertisers for clicks that were not valid.
Google proposed a $90 million settlement for its part in the case, including $30 million for legal fees and $60 million in AdWords credits. The judge has given preliminary approval to the settlement. That deal now had until June 15 to win approval by a majority of the plaintiff class; the judge has scheduled a two-day hearing beginning July 24 during which to consider giving the settlement final approval.
The suit filed by Kinney argues that lawyers for Lane’s Gifts and another plaintiff in the case, Caufield Investigations of Ft. Lauderdale FL, are not adequately representing other Google advertisers. The suit argues that the proposed settlement severely understates the financial benefits Google has garnered from turning a blind eye to click fraud.
“In the face of a seemingly incontestable motion to dismiss, Lane’s and Caufield have placed their own interest above the class by agreeing to a settlement that takes away existing rights and claims from large portions of the class, in return for a phantom benefit,” the complaint argued.
Another click-fraud lawsuit against Google in a California court was scheduled for a May class-action hearing, but the Arkansas proposal has stayed any judgment in the California case. If the settlement is accepted, the California suit against Google may be rendered moot.
