In order to resolve a long-running lawsuit alleging that it underpaid advertisers by not delivering on promised discounts and charging for clicks on advertising outside of the designated regions, Google has agreed to pay $100 million in cash.
Late Thursday, an exploratory settlement of the 14-year-old class action lawsuit started in March 2011 was submitted to the federal court in San Jose, California. The settlement needs the judge’s permission.
Participants in Google’s AdWords program, now called Google Ads, charged the search engine provider with breaking their agreement by manipulating its Smart Pricing mechanism to inflate discounts.
Additionally, those who advertised claimed that Google, a division of Alphabet, based in Mountain View, California, had deceived them by not restricting ad distribution to the places they specified, violating California’s unfair competition law.
Users who utilized AdWords from January 1, 2004, to December 13, 2012, are covered by Thursday’s settlement. Plaintiffs’ attorneys may request expenses of up to 33% of the settlement money in addition to $4.2 million for costs. Court documents state that the case took a long time because the parties presented a lot of documentation, including over 910,000 pages of documents and several terabytes of Google click data, and they took part in six negotiations with four different agents of mediation.
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