Bloomberg News

Facebook Advertisers Can Appeal Class-Action Suit Denial

July 18, 2012

Facebook Inc. (FB:US) cost-per-click advertisers won permission to appeal a ruling denying their bid to proceed with a group lawsuit for alleged overcharges by the world’s largest social-networking website.

A three-judge panel of a San Francisco-based federal appeals court said yesterday the advertisers could seek review of an April 13 lower-court ruling that they hadn’t shown their claims have enough in common to justify certifying the case as a class-action suit. The judges didn’t give a reason for their decision.

Facebook was sued in 2009 over claims that advertisers, charged based on the number of clicks or views they receive, were wrongfully billed for nonexistent, fraudulent or invalid clicks.

The plaintiffs are advertisers that contracted with Menlo Park, California-based Facebook through an automated self- service process available to the general public. They sought to represent all cost-per-click advertisers that paid Facebook from May 2009 to the present.

Larry Yu, a Facebook spokesman, didn’t immediately reply to an e-mail message seeking comment on the decision.

The lower-court case In Re Facebook PPC Advertising Litigation, 4:09-cv-03043, U.S. District Court, Northern District of California (Oakland).

To contact the reporter on this story: Karen Gullo in San Francisco at kgullo@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.


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