Click Fraud Settlement Due to Fear of Dismissal?




Over at Adotas, Jordan Glogau raises an interesting theory on why the “Lane’s Gifts” lawsuit was settled for such a paltry amount.

Glogau suggests the suit was in jeopardy because it wasn’t filed in California, as required in Google’s T&Cs.

So why did Google change its mind and decide to settle in Arkansas? That is simple, the terms are totally one-sided in Google’s favor. Because Google was about to have the case against it dismissed based on the fact that it was in the wrong venue, it forced Lane’s Gifts’ lawyers into a bad deal. Google’s lawyers figured they could give a small amount of cash to these lawyers and limited refunds to the advertisers.

Got to love the conspiracy theory behind this. Makes sense too. Google knows the suit is close to being dismissed, puts pressure on the lawyers to accept a crappy deal. Google wins, the lawyers win, the advertisers are screwed.