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 $4.95 million in attorney fees to settle a class action.+ c* P, J0 m- D$ w( z" W
7 K. M# `( g/ D B0 L' gCheckmate Strategic Group filed a lawsuit alleging that Yahoo has been profiting from bogus sales referrals generated through click fraud.
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Yahoo's ad revenue totaled $9.1 billion from January 2004 through March of this year, the Associated Press reported.
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7 W* r: h {- B" D# N. w- y! @7 E+ SThe 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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' ^ X1 [) `. d9 u5 pTo address the click fraud concern, Yahoo has initiated a claims system.% ^% d2 y% r4 x6 n8 x4 ]
t6 s* J# m& O% T6 `/ e( d& A"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.. W+ D; |) H) G n8 j
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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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