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Google will pay 90 million dollars to settle click fraud lawsuit

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Attacked for profiting from “click fraud” since April 2005 by several companies, Google has chosen to make a compromise last week. Following a note posted on the blog of Nicole Wong, Google Associate General Counsel, Google agreed to establish a $90 million fund to settle the lawsuit.

According to this blog, “The proposal would allow advertisers to apply for credits for clicks they believe were not valid.... We do not know how many advertisers will apply and receive credits, but the total amount, including the legal fees determined by the judge, will not exceed $90 million."

The click fraud is a ruse that generates bogus sales referrals on pay per click ads, which are overcharged to some advertisers while increasing revenues for websites.


According to this blog, “The proposal would allow advertisers to apply for credits for clicks they believe were not valid.... We do not know how many advertisers will apply and receive credits, but the total amount, including the legal fees determined by the judge, will not exceed $90 million."

The click fraud is a ruse that generates bogus sales referrals on pay per click ads, which are overcharged to some advertisers while increasing revenues for websites.

Other interesting facts:

"Unscrupulous competitors are also believed to use click fraud, which Google chief executive Eric Schmidt recently described as 'the biggest threat' to the internet economy.

Yahoo, which was also sued, said it would continue to contest the lawsuit and expressed confidence in its 'proprietary click protection' to combat fraud.

In its first five quarters as a public company, Google has reported more than 7 billion dollars in revenue - 95 per cent of which comes from pay-per-click ads." Other interesting facts:

"Unscrupulous competitors are also believed to use click fraud, which Google chief executive Eric Schmidt recently described as 'the biggest threat' to the internet economy.

Yahoo, which was also sued, said it would continue to contest the lawsuit and expressed confidence in its 'proprietary click protection' to combat fraud.

In its first five quarters as a public company, Google has reported more
than 7 billion dollars in revenue - 95 per cent of which comes from pay-per-click ads."

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