gregbo (gregbo) wrote,

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Yahoo sued for $1 million

Another knife in Y!'s back. filing a click fraud lawsuit against Y!.

This one could turn out pretty interesting. The plaintiff claims that Y! had technology to determine that there was fraud, but did nothing about it (except offer a nearly $18K refund). If it's true that Y! didn't do more about the fraud, it'll just make Y! look worse than it already is (and devalue its stock). OTOH, it they couldn't do anything about the fraud (because the fraud looked like ordinary nonconverting clicks), it also makes Y! look bad because advertisers may be more at risk of paying for unwanted clicks. (Although I'm curious how the plaintiff will prove that the clicks were fraudulent.) But either way, another nail in the coffin ...
Tags: click fraud

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