Google Agrees to Pay Advertisers Over Click Fraud

MOUNTAIN VIEW, Calif. — Google will pay up to $90 million to settle a lawsuit alleging it overcharged thousands of advertisers who paid for bogus sales referrals generated through click fraud.

Any website, adult or mainstream, showing fraudulent clicks dating back to 2002 will be eligible for credit that could be used toward future Google advertising.

While Google decided to settle with businesses, others have not. The class-action lawsuit filed by Arkansas-based Lane's Gifts and Collectibles and Caulfield Investigations targeted Yahoo, as well as Time Warner and its America Online and Netscape units.

The suit alleged that the companies had conspired with its advertising partners to conceal the magnitude of click fraud to avoid making refunds.

Through the years, Google has remained consistent with its statement that click fraud is minuscule. Court documents appear to support that. The $90 million translates into less than 1 percent of Google's $11.2 billion in revenue since 2002.

In its court filing, Lane’s Gifts said Google and other plaintiffs collected fees for pay-for-click advertising, which were not actually generated by consumers clicking on the search engine sites to get to Lane's Gifts.

Google said it will allow advertisers to apply for reimbursement for clicks they believe are invalid.

Google has posted details about the proposed settlement here.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Ukrainian Legislators Revive Porn Decriminalization Push

The Verkhovna Rada, Ukraine’s parliament, is once again considering a bill that would decriminalize the creation and distribution of pornography in that country — an activity that currently carries a prison sentence of three to five years.

Ofcom Fines XGroovy $986,000 for AV Noncompliance

U.K. media regulator Ofcom on Thursday imposed a fine of 700,000 pounds (about $986,000) against adult website XGroovy for failing to comply with provisions of the Online Safety Act.

Segpay Opens New Global Headquarters in Boca Raton

Segpay has selected Boca Raton for its new global headquarters.

X3 Euro All-Stars Paint Amsterdam Red in Billboard Campaign

The X3 Expo Euro All-Stars are making a splash on the vibrant streets of Amsterdam as the creator-first fan event prepares to make its debut on the continent.

Tiny Secret Games Taps Pauline Schmiechen for Growth and Partnerships Advisor

Adult game studio Tiny Secret Games has named Pauline Schmiechen as its new growth and partnerships advisor.

BranditScan Names Aerie Saunders as Community Manager

BranditScan has named Aerie Saunders as its new community manager.

'Goddess' Charlotte Sins Blesses the September Issue of X3 Magazine

Charlotte Sins graces the cover of the September issue of X3 magazine, the premier publication capturing the real personalities, passions, and stories behind top stars.

Centrobill Names Len Garcia as Chief Sales Officer

Centrobill has named Len Garcia as its new chief sales officer.

Mistrezz.AI Joins ASACP as Corporate Sponsor

The UK-based adult AI companion platform Mistrezz.AI has signed on as the latest corporate sponsor for Association of Sites Advocating Child Protection (ASACP).

Woodhull Freedom Foundation Debunks Pornography Myths in Latest Edition of 'Fact Checked' Series

Woodhull Freedom Foundation is hosting the latest edition of its virtual series “Fact Checked by Woodhull,” addressing myths about pornography.

Show More