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 © 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

SWR Data Publishes 'Clip Trend' Report

Adult industry market research outfit SWR Data has published a report on the performance of clip platforms and sales.

Another German Court Rejects Blocking Orders Against Pornhub, YouPorn

A German court has blocked the Rhineland-Palatinate Media Authority (MA RLP) from forcing telecom providers based within the court’s jurisdiction to cut off access to Aylo-owned adult sites Pornhub and YouPorn.

Ofcom Fines Kick Online Entertainment $1 Million for AV Noncompliance

U.K. media regulator Ofcom on Thursday fined Kick Online Entertainment 800,000 pounds (more than $1 million) for failing to implement age checks as required for compliance with the Online Safety Act.

FSC Details Legislative Outlook for 2026

The Free Speech Coalition (FSC) has laid out the legislative outlook for the industry in 2026.

AEBN Publishes Popular Searches by Country for December, January

AEBN has released the list of popular searches from its straight and gay theaters, by country, for December and January.

Jim Austin Joins CrakRevenue Team

Strategist Jim Austin has been hired by CrakRevenue.

Judge Dismisses NCOSE-Backed Suits Against Adult Sites Over Kansas AV Law

A federal judge on Tuesday dismissed lawsuits brought against two adult websites in Kansas for alleged violations of the state’s age verification law.

Aylo/SWOP Panel Spotlights Creators' Struggle for Digital, Financial Rights

Aylo and Sex Workers Outreach Project (SWOP) Behind Bars presented, on Tuesday, an online panel on creators’ rights, debanking and deplatforming.

AV Bulletin: Canada, Italy, Australia Updates

Since the Supreme Court’s decision in Free Speech Coalition v. Paxton, more state age verification laws have been enacted around the United States, as well as proposed at the federal level and in other countries. This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Holly Randall Soft Launches 'Wet Ink' Magazine

Holly Randall has officially soft-launched the creator-focused publication Wet Ink Magazine.

Show More