Facebook settles sponsored stories suit for US$10m
Mon, 18 Jun 2012 7:33a.m.
Facebook is paying US$10 million to settle a lawsuit over ads that it called sponsored stories.
Facebook's service allowed companies to pay to retransmit users' activities to their friends' pages. If a user clicked the "like" button for a brand, the click might show up as a "sponsored story" on friends' pages. The ads started in early 2011.
Some Facebook users sued, saying that Facebook used their images for commercial activity. Facebook had argued that the plaintiffs did not show they were hurt by the practice.
Court documents from late last week say a settlement has been reached. Facebook attorney Michael Rhodes confirms Sunday that it's for US$10 million, which will be given to charity. A judge still needs to approve the settlement.
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