A preliminary settlement has been approved by a federal court in California in a lawsuit brought against Google. The lawsuit was originally filed in 2005 by Howard Stern (not to be confused with the radio personality by the same name) and a printing company. The plaintiffs alleged that Google had overcharged them for their purchase of AdWords.
AdWords is a pay-per-click advertising service offered by Google that allows customers to place ads on webpages that appear to Google users. Customers pay a fee to Google only when a user clicks on the ad. Customers can set caps for how much they want to advertise, or spend, per day. The lawsuit claimed that Google exceeded the spending caps customers set by 120-160% at times.
The class action specifically alleges claims of:
- Breach of contract
- Unfair competition
- False advertising
Google has agreed to settle the lawsuit and their spokesperson said, “Google believes the claims are without merit, but we are pleased to have the litigation behind us and to move forward with our business objectives,” according to MediaPost.
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