Google Settles AdWords Lawsuit For $20 Million

This story was written by Tameka Kee.
The list of companies and individuals suing *Google* for the way it runs its search ad business is a long one: including everyone from biggies like American Airlines to one-off advertiser lawsuits. And settling its latest AdWords-related lawsuit could ultimately cost Google (NSDQ: GOOG) up to $20 million, according to Mediapost.

The class-action lawsuit was filed by two small business advertisers in 2005: Minnesota-based printing company CLRB Hanson Industries and N.J.-based Howard Stern (not the radio personality); they argued that Google had charged them more for ads on certain days than they'd agreed to pay for. Google countered that it had only overcharged them to make up for days when it under-delivered ads, but still chose to end the litigation with a settlement. Both plaintiffs will receive $20,000; Google agreed to pay their lawyers more than $5 million. Other affected advertisers will get AdWords credits.

In a statement to Mediapost, a company spokesperson said: "Google believes the claims are without merit, but we are pleased to have the litigation behind us and to move forward with our business objectives."

Photo Credit: srqpix


By Tameka Kee
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