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

BranditScan Rolls Out 'UrLinks' Platform Feature

BranditScan has introduced its new UrLinks homepage feature for creators.

UK Outlaws Content Featuring Choking, Adults Portraying Children

The U.K.’s Crime and Policing Bill received final passage in Parliament on Monday, including provisions criminalizing depictions of “non-fatal strangulation” as well as sexual content in which adults portray children.

Grooby Launches 30th Anniversary Campaign

Grooby is celebrating its 30th anniversary with a showcase campaign featuring 30 of the studio's newest models.

Island Conference Joins ASACP as Media Sponsor

Island Conference has signed on as an in-kind media sponsor for the Association of Sites Advocating Child Protection (ASACP).

Elly Clutch, Girthmasterr to Host 2026 XMA Creator Awards

XBIZ is pleased to announce Elly Clutch and Girthmasterr as co-hosts of the 2026 XMA Creator Awards, presented by premium creator platform Fansly.

FSC: TAKE IT DOWN Act Provisions Take Effect May 19

The Free Speech Coalition has issued a reminder notice that the notice-and-removal requirements of the federal TAKE IT DOWN Act will go into effect on May 19.

Venus Berlin Joins ASACP as Media Sponsor

Venus Berlin has signed on as an in-kind media sponsor for the Association of Sites Advocating Child Protection (ASACP).

XBIZ Miami's Host Hotel Sold Out; Additional Hotel Added

Guest rooms at XBIZ Miami’s exclusive conference venue, Goodtime Hotel in South Beach, are now completely sold out.

Penthouse Wins Trademark Infringement Case Against Fraudulent Domain

The World Intellectual Property Organization (WIPO) has ruled in favor of Penthouse World Media in a case against a website using an infringing domain.

'Collective Corruption' Relaunches Through PAYSITE

Fetish and BDSM membership site Collective Corruption has relaunched through PAYSITE.

Show More