Yahoo! Inc. announced it has reached a settlement agreement with Checkmate Strategic Group, will consider refunding money to advertisers dating back to January 2004 and plans pay $4.95 million in attorney fees to settle a class action.) F9 D' e! Y" R
5 m& _! z$ y, F0 B# V7 ]; tCheckmate Strategic Group filed a lawsuit alleging that Yahoo has been profiting from bogus sales referrals generated through click fraud.2 y+ E3 L( ^! x. r6 e0 t* b- W
" p$ ^) S) p" T+ `5 r4 wYahoo's ad revenue totaled $9.1 billion from January 2004 through March of this year, the Associated Press reported.
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3 S/ Y# d7 C9 q' e: ^* |! R. QThe AP also noted that some studies have estimated that Yahoo's click fraud rate is 30 percent, a number which Yahoo has disputed.
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To address the click fraud concern, Yahoo has initiated a claims system.- h- Z) Y' }3 {/ {% E( ^) C
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"Yahoo will offer advertisers a one-time extended claims period during which advertisers can submit click fraud claims for clicks dating back through January 2004. If our investigation determines that a credit is due that was not given previously, we will issue a 100 percent credit, which can be used however the advertiser wishes to use it. This claims process will be overseen by a retired Federal judge," according to a Yahoo company statement.
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In March 2006, Yahoo competitor Google agreed to pay $90 million to settle a lawsuit alleging the company, along with other web search companies, billed advertisers for false customer leads. |
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