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Google Click Fraud Settlement Hits Snag

By Ed Oswald, BetaNews

May 12, 2006, 11:29 AM

Lawyers representing several Internet search advertisers who use Google's AdWords service have filed suit hoping to block a proposed $90 million settlement over allegations of click fraud. The plaintiffs claim that the settlement does not adequately compensate those affected.

"Advertisers must decide: take the pennies offered by Google and be happy with the status quo or opt out and pursue legal restitution through a lawsuit," Dylan Pollard, a Los Angeles-based plaintiffs' click fraud attorney, said earlier this week. "Either way, they don't have much time to decide."

On Thursday, they made the decision to file suit in the same Arkansas court that the original settlement was reached. A judge is set to hear arguments in a two-day hearing July 24 to decide on whether to approve the settlement.

Click fraud occurs when a person displaying advertising on their Web pages either manually or automatically clicks a link repeatedly in order to generate revenue. The advertiser is then forced to pay for these false leads.

While Google does not directly participate, the plaintiffs argued that the company does too little to prevent it from occurring. The settlement gave $60 million in advertising credits, and a staggering $30 million to be used for lawyer fees. No cash would be given as part of the payment.

Pollard has teamed up with another click fraud lawyer, Shawn Khorrami, to start a Web site that helps Google advertisers opt out of the proposed settlement. It is hoped that enough plantiffs would opt out that it would cause the judge to throw out the initial settlement.

"To try to obtain compensation from past click fraud abuses with Google, advertisers need to be pro-active. To start the process, they must opt out of the proposed settlement," Kohorrami argued.

Furthermore, Google could legally get away with paying as little as a half percent of total losses. Thus, a $10,000 click-fraud loss could theoretically be settled for as little as a $50 advertising coupon.

Google called the lawsuit inappropriate, and questioned its motives. "We question if this lawsuit may be motivated more by the quest for attorneys' fees than pursuit of what's best for class members," the company said in a statement.

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By mikebaker

edited Aug 6, 2006 - 4:18 PM

Click Fraud is an interesting topic - one which both clicktracks and adwatcher will stop, one which will cost you an estimated 20% of your ad budget.
This is an interesting article with valuable information. I have used both clicktracks and adwatcher to prevent clickfraud. What we and many other webmasters are starting to do is invest our marketing dollars into clicktracks, adwatcher or other ad tracker software.
If you are looking for more information on adwatcher or clicktracks i recommend you take a look at: http://www.trackingsoftwarereviews.com they have full reviews on both clicktracks and adwatcher!

Mike Baker

Score: 0

By geosub69

edited Jun 3, 2006 - 5:06 PM

This settlement is AWFUL!
I have mailed a letter objecting to the settlement as per the email notice I received; and, have opted out of the settlement.
Following is copy of the letter I have sent & it shows the 3 parties you need to mail to if you want to object:

Clerk of the Miller County Court
400 Laurel
Texarkana, AR 71854

George L. McWilliams
Patton, Roberts, McWilliams & Capshaw LLP
2900 St. Michael Drive, Fourth Floor
Texarkana, TX 75503

Daralyn J. Durie
Keker & VanNest, LLP
710 Sansome St.
San Francisco, CA 94111

OBJECTION TO PROPOSED SETTLEMENT OF Lane’s Gifts and Collectibles et al. v. Google, Inc. et al., Case No. CV-2005-52-1,

Gentlemen:

This is to notify you that I object to the proposed settlement of the above-captioned case for the reasons that follow:

1. Under the proposed settlement, no member of the class will receive any monetary award. No member can receive any benefit from the settlement without purchasing and paying for additional advertising from Google. The only parties that will receive any cash benefit from this case are the attorneys.

2. I have been damaged by click fraud, yet have no plans or need to purchase additional advertising from Google, and therefore will receive no benefit from the proposed settlement.

3. It is not possible to obtain a claim form: I have tried on numerous occasions since receiving e-mail notice of the proposed settlement to access the designated website, www.clicksettlement.com to no avail: I have not been able to access the website, and my browser reports that there is no such site/server.

4. Since only the attorneys will receive tangible benefit from the settlement, this settlement should be rejected by the court.

For the reasons stated herein, I urge the court to reject the proposed settlement.

Score: 0

By jmtrego

edited May 23, 2006 - 9:03 PM

We at http://www.clickdefense.com are vigorously analyzing client’s data to show incidence of likely click fraud. Most clients want a 3rd party look at their data to show any PCF (potential click fraud) missed by Google. Google only sees clicks that are subject to their billing. Clicks collected from other search engines showing identical IP addresses or same "out of market" area can show otherwise innocent looking Google clicks as PCF. We use many different filters to enable us to identify PCF. Yes, we do have attorneys (some of the nation’s best I might add) lined up to help our clients get refunds that are rightfully theirs. http://www.clickfraudlegal.com/

Score: 0

By affguy

edited May 23, 2006 - 7:58 PM

if you would like to opt out or talt to an lawyer go to this link www.clickfraud-legal-center.com

Score: 0

By spongy-poo

posted May 13, 2006 - 11:36 PM

Gimme mo' money!

Score: 0

By itanshi

posted May 12, 2006 - 1:36 PM

odd, i mean, i know many who complain click fraud did not happen yet they were acused of it....

would making the door harder to get through be safer for people trying to get in the door?

poor google, they need to work on this

Score: 0

By p0rt1s

posted May 12, 2006 - 12:15 PM

I didn't join the class settlement. How do I get the credit? Any links anywhere?

Score: 0

By xyzcb1

posted May 13, 2006 - 7:47 PM

I don't think you can get the credit if you didn't join the class action.

Score: 0

By jmtrego

posted May 23, 2006 - 9:13 PM

If you think you have a considerable amount due you, you can opt out of the class action and file an individual suit as many are doing.
Ck this site: http://www.clickfraudlegal.com/

Score: 0

By jmtrego

posted May 23, 2006 - 9:12 PM

If you think you have a considerable amount due you, you can opt out of the class action and file an individual suit as many are doing.
Ck this site: http://www.clickfraudlegal.com/

Score: 0

By rijp

posted May 12, 2006 - 11:40 AM

WTF! Inadequate.. Are you kidding? Yeah, because they lawyers don't get enough cut! Those greedy bas****s.

Score: 0