Google Faces Click Fraud Charges

MOUNTAIN VIEW, Calif.—Dominant search engine Google has been sued in federal court for failing to prevent click fraud in its AdWords and AdSense programs.

The complaint, which has the potential to become a class action suit on behalf of all Google’s advertisers since 2000, maintains that the search giant has not done enough to fight click fraud, which results in increased costs for advertisers as well as increased revenue for Google.

In addition, the suit requests that Google open its records for third-party auditing.

The plaintiff, Colorado pay-per-click tracker Click Defense, estimates that between 20 and 38 percent of all advertising click-throughs are fraudulent.

"[Advertisers’] payments average approximately 50 cents per click, but can reach over $100 for sought-after items valuable to advertisers," the complaint states. Click Defense says that click fraud can be committed by a business that repeatedly clicks on the AdSense listing of a rival, driving up the cost of its rival’s advertising bills.

“We believe this suit is without merit, and we will defend ourselves against it vigorously,” said Google spokesman Mike Mayzel.

Google watchers believe that Click Defense is using the suit as a gambit to peek inside Google’s operations, and the $10 million sought in damages for negligence and breach of contract is a red herring.

Inside Google’s Nathan Weinberg said, “What I don’t understand is why a company that profits from fighting click fraud [Click Defense] would sue a company for not making them unnecessary.”

Weinberg concluded the suit was a canny move. “It seems only obvious that this suit is meant to drum up more clients for Click Defense,” he said.

Google and rival Yahoo were also sued in April for lack of click-fraud vigilance. Arkansas-based lawyers for the case set up a website, LostClicks.com, to solicit additional plaintiffs in a class action suit.

Click Defense CEO Scott Boyenger said that Google was not on trial for committing click fraud itself, “[but they are] intentionally vague in describing exactly what steps are being taken.”

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

Dreamcam Rolls Out Web-Based Passthrough VR

Dreamcam has introduced web-based passthrough VR functionality to its streaming platform.

2026 TEAs Nominees Announced

Nominees for the 2026 Trans Erotica Awards (TEAs), presented by Clips4Sale, have been announced. The ceremony will return to the Avalon in Hollywood on Sunday, March 8.

Lauren Phillips, Derek Kage Cap AEBN's Top 100 Stars of 2025

AEBN has revealed its top 100-selling stars of 2025 in both gay and straight theaters.

Former IEAU Officer Sentenced to 4 Months

Amanda Gullesserian, who performed in the industry under the name Phyllisha Anne and founded the now-defunct International Entertainment Adult Union (IEAU), has been sentenced to four months’ imprisonment for making a false statement in an IEAU federal financial report.

2026 XBIZ LA Conference Schedule Announced

XBIZ is pleased to announce the release of the full show schedule for the XBIZ 2026 conference, set to take place Jan. 12-15 at the Kimpton Everly Hotel in Hollywood.

Needemand Joins ASACP as Corporate Sponsor

French startup company Needemand has signed on as the latest corporate sponsor for Association of Sites Advocating Child Protection (ASACP).

Utah State Legislator Proposes New 'Porn Tax'

A Utah state senator introduced a bill on Monday that would impose a 7% tax on the gross receipts of adult websites doing business in that state, plus require adult sites to pay an annual $500 fee.

Carlotta Champagne is LoyalFans' 'Featured Creator' for January

LoyalFans has named Carlotta Champagne as its Featured Creator for January.

Pineapple Support Relaunches Site

Pineapple Support has updated and relaunched its website.

Arcom-Targeted Sites Implement Age Verification in France

Five high-traffic adult websites based outside of France have implemented age verification as required under the nation’s Security and Regulation of the Digital Space (SREN) law, after receiving warnings from French media regulator Arcom.

Show More