HIGHLIGHTS

The lawsuit alleged that Google charged advertisers for clicks outside specific target locations and modified its Smart Pricing algorithm.

Following an exhaustive review of over 910,000 documents and several mediation sessions, Google has opted to settle.

Plaintiffs’ attorneys may claim up to 33% of the total settlement amount, in addition to $4.2 million in legal fees.

Google has reached an agreement to pay $100 million (over ₹850 crore) to settle a long-standing lawsuit that accused the tech giant of overcharging advertisers and not delivering the discounts that were promised. This legal action dates back to 2011, when a group of advertisers filed a lawsuit alleging that Google’s advertising platform was charging for clicks outside designated target areas while manipulating its Smart Pricing strategies to diminish the promised discounts.

As reported by Reuters, the settlement, which has been filed in a federal court in California, is currently pending judicial review. This agreement pertains to advertisers who utilized Google AdWords (now known as Google Ads) from 2004 to 2012. The plaintiffs argued that Google breached its contracts by misrepresenting ad placements and conducting practices in violation of California’s laws against unfair competition. Despite these claims, Google has consistently denied any wrongdoing but chose to resolve the issue amicably after 14 years of legal disputes.

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Reasons Behind Google’s Decision

The report reveals that both parties extensively reviewed over 910,000 documents and sifted through substantial amounts of click data as part of the evidence-gathering process for the lawsuit. The settlement was agreed upon following numerous mediation discussions. Alongside the overall settlement amount, which amounts to $100 million, the plaintiffs’ legal team may seek to collect up to 33% of that sum as their fee, along with $4.2 million earmarked for legal expenses.

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A Google spokesperson, Jose Castaneda, expressed satisfaction with the reached settlement, which involves advertising features that were modified over a decade ago. The case, formally known as Cabrera et al. v. Google LLC, is filed with the US District Court for the Northern District of California and is waiting for final judicial approval.

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