Yahoo (YHOO) has agreed to settle the class-action click fraud lawsuit this week by agreeing to pay back cash refunds or ad credits to marketers who paid for the clicks made by users. It has been an ongoing problem for marketers who have been inundated with clicks made by those who have no interest in their products or services.
The agreement is different from the Google (GOOG) settlement earlier in the year mostly based upon Yahoo's agreeing to offer cash rebates for the amount overpaid, whereas in Google's settlement they gave ad credits for a percentage of the overpayment.
Atlanta attorney Darren Kaplan said, "We believe it's a fair and adequate settlement, whether you get cash or credit is really going to depend on what your preference is, or whether you still have an active account with Yahoo."
CheckMate Strategic Group Inc., which brought the Yahoo case, said that Yahoo didn't properly police the clicks on the search ads. Los Angeles U.S. District Judge Christina Snyder gave approval to the settlement this week.
Yahoo will also pay up to $4.95 million in attorneys' fees.
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