TELECOM Digest OnLine - Sorted: Judge Approves Yahoo Click Fraud Settlement

Judge Approves Yahoo Click Fraud Settlement

Reuters News Wire (reuters@telecom-digest.org)
Wed, 28 Jun 2006 23:18:42 -0500

A federal judge on Wednesday gave preliminary approval to a settlement
in a lawsuit that accused Yahoo Inc. of not adequately protecting
advertisers from a practice known as "click fraud," the Wall Street
Journal reported.

Under the terms of the settlement, Yahoo would pay about $5 million in
legal fees and extend its period for reviewing advertiser click fraud
complaints to include disputed charges since January 2004, rather than
addressing complaints received only within the past 60 days, the
newspaper said.

The preliminary approval was granted by U.S. District Court Judge
Christina Snyder in Los Angeles.

The practice of clicking on online advertisements with the intent of
driving up a business rival's costs or for earning commission is known
as click fraud.

On Yahoo and its partner Web sites advertisers pay each time ads are
clicked on. Investors have expressed concern that click fraud might be
a significant problem that could threaten advertiser confidence and
profits, the Journal report said.

"We're very pleased with the terms of the settlement," Reggie Davis,
head of litigation for Yahoo, Sunnyvale, Calif. told the Journal.

The suit was brought by private investigation firm Checkmate Strategic
Group Inc. of Delray Beach, Florida, as a class action, the newspaper
said.

Copyright 2006 Reuters Limited.

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