Law Professor Calls Click Fraud Lawsuits Shakesdowns

MILWAUKE, Wis. — The recent spike in click fraud lawsuits against Internet service providers such as Yahoo and Google have some in the legal community fighting back, among them a law professor who called such suits “shakedowns” on his blog.

Marquette University Law School Professor Eric Goldman likened plaintiffs’ lawyers who filed a recent class-action lawsuit against Yahoo to extortionists.

Concluding that it is often cheaper for defendants like Yahoo to settle rather than litigate, Goldman urged the company to fight.

“I think these lawsuits are nothing more than a shakedown for cash,” Goldman wrote. “Even unmeritorious class action lawsuits are expensive to defend, so the plaintiffs’ lawyers can exploit those defense costs for their personal largesse. They can make this argument to defendants: Settle with me for a fraction of your total expected defense costs, and we’re both better off (defendants save some defense costs, plaintiffs’ lawyers grab some personal loot).”

For their part, lawyers for the plaintiffs in the Yahoo case were not pleased by Goldman’s allegations.

“[Goldman] read a piece of paper that was filed in court and he's making an accusation of criminal activity, which I just think is irresponsible,” Thomas More Marrone, one of the plaintiffs’ lawyers, said.

Another plaintiffs’ lawyer in the case, Ben Edelman, who Network World described as “the most respected independent adware expert,” said that commenting on Goldman’s defamatory speech “unduly dignifies” the comments. Edelman added that he believed the suit “speaks for itself.”

In the present suit, Yahoo is accused of promising advertisers who paid higher fees that their ads would appear on “premium” sites like CNN, but according to court papers, the ads actually appeared via spyware and adware, and often on “less-than-premium” sites, damaging the reputation of the ad buyer and diminishing the punch of the ads.

In a similar case, which Google tried to settle for $90 million, plaintiffs’ attorney Joseph Kinney filed papers to block the settlement, charging that the amount agreed upon by some plaintiffs does little to hold the company accountable to advertisers and the public.

Copyright © 2024 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

Online Industry Veteran Joe E. Passes Away

Online industry veteran Joe E. has passed away, according to friends and industry associates.

Judge Acquits Backpage Defendants of Most Charges Before 2nd Retrial

A federal judge acquitted former co-owner of Backpage.com Michael Lacey and two co-defendants on most of the counts remaining from the protracted trial launched against the website operators by the Justice Department in 2018.

Adult Time Partners With Animation Studio 3DGspot

Adult Time has signed a deal to distribute content on its streaming platform from animation studio 3DGspot.

Georgia Gov. Brian Kemp Signs Age Verification Bill Into Law

Republican Gov. Brian Kemp signed into law on Tuesday a bill that includes Georgia’s version of the age verification of adult content provisions being sponsored around the country by anti-porn religious conservative activists.

AEBN Publishes Popular Searches by Country for February, March

AEBN has released the popular searches from its straight and gay theaters in more than three dozen countries during February and March.

HardWerk Relaunches Through YourPaysitePartner

HardWerk.com has relaunched through YourPaysitePartner (YPP).

Aylo Asks Judge to Trim Sweeping GDP-Related Lawsuit

Aylo asked a California federal judge during a hearing on Monday to drop trafficking claims from a sweeping lawsuit brought by a former GirlsDoPorn model.

California Republicans, Democrats Team Up to Advance Age Verification for Porn

Both Republicans and Democrats in the California Assembly’s Privacy and Consumer Protection Committee voted last week to move forward a version of the age verification bills being sponsored around the country by anti-porn religious conservative activists.

Cosplayground Releases 'Furiosa XXX: A Porn Parody'

Cosplayground has released its seventh original production, “Furiosa XXX: A Porn Parody.”

Washington Post Spotlights ECP VP Solomon Friedman's Appearance at XBIZ LA

The Washington Post published this weekend a lengthy feature about Pornhub and Aylo, focusing on Ethical Capital Partners’ VP of Compliance Solomon Friedman’s keynote address and other appearances at XBIZ Los Angeles in January.

Show More