Yahoo Settles Click Fraud Case

LOS ANGELES — Yahoo escaped the fate of its rival Google, settling its class-action click fraud case for $5 million in legal fees and promising to institute a variety of anti-click fraud measures.

U.S. District Court Judge Christina Snyder gave preliminary approval for the settlement, which requires Yahoo to pay a small cash sum, extend its period for advertisers to file complaints and take steps to limit click fraud in the future.

Click fraud is the practice of charging pay-per-click advertisers for fraudulent clicks. Investigative firm Checkmate Strategic Group brought the case in June 2005, alleging click fraud dating back to early 2004.

In addition to paying the plaintiff’s legal fees, Yahoo will offer advertisers a one-time extended claims period to submit click fraud claims that occurred after January 2004.

As part of the settlement, the company also will establish a Traffic Quality Advocate office to address advertiser concerns about click fraud and traffic-quality issues. Yahoo will further combat the industrywide problem of click fraud by working to develop a definition of the problem and creating a comprehensive list of identified bots.

While not required to do so in the settlement, Yahoo has pledged to provide advertisers with more clarity regarding refunds for instances of click fraud.

Yahoo’s relatively paltry cash settlement pales in comparison to a recent settlement in a case brought against search engine giant Google. The Mountain View, Calif.-based company agreed to pay $90 million to settle that case.

Copyright © 2025 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

FSC: Federal Report Confirms Unfair Banking Discrimination Against Adult Industry

The Free Speech Coalition (FSC) today announced that a federal report on debanking has concluded that several U.S. banks engaged in discriminatory banking practices against members of the adult industry.

Pineapple Support Names Natalie Pereira Executive Assistant

Pineapple Support has appointed Natalie Pereira as its new executive assistant.

AEBN Publishes Popular Searches by Country for October, November

AEBN has released the list of popular searches from its straight and gay theaters by country in October and November.

FSC Summit Event Schedule Announced

Free Speech Coalition (FSC) has revealed its slate of networking events and symposiums for its annual summit, set for January 15 during XBIZ 2026.

Pornhub Releases 2025 'Year in Review' Report

Pornhub has released its “Year in Review Insights” report for 2025, the 12th edition of the site’s annual statistics, data analysis, and infographic initiative.

Washington AV Bill Jumps on 'Health Warning' Bandwagon

A new age verification bill in the Washington state legislature would require adult sites to post notices warning users of alleged health risks, despite a previous federal court ruling against such requirements.

BranditScan Launches '25 Days of Christmas' Promo

BranditScan has launched its 25 Days of Christmas promotion.

MelRose Michaels Named Host of Online Industry Edition of XBIZ Honors

Performer and entrepreneur MelRose Michaels will MC the online industry edition of the 2026 XBIZ Honors, set for Wednesday, Jan. 14, at the Kimpton Everly Hotel in Hollywood.

Irish Regulator: EU States to Ramp Up AV Enforcement for Smaller Sites

A representative of Irish media regulator Coimisiún na Meán told legislators that Ireland and other EU states are preparing to expand enforcement of age verification regulations to include smaller adult sites, British newspaper The Times is reporting.

Sansyl Group Acquires Blue Donkey Media

Sansyl Group, parent company of AdultPrime Network, has acquired Blue Donkey Media B.V., owner of Dutch adult site Meiden van Holland, among several other erotic websites and television channels.

Show More