Judge Rejects Facebook’s Sponsored Stories Class-Action Settlement
Earlier this month, U.S. District Judge Richard Seeborg expressed “significant concerns” about the settlement Facebook reached in June in a class-action suit over the use of its members’ likenesses in sponsored stories. The concerns were apparently significant enough to cause him to reject the settlement in a ruling late Friday.
Earlier this month, U.S. District Judge Richard Seeborg expressed “significant concerns” about the settlement Facebook reached in June in a class-action suit over the use of its members’ likenesses in sponsored stories. The concerns were apparently significant enough to cause him to reject the settlement in a ruling late Friday.
Wired reported that the main concern expressed by Seeborg — who took over the case from District Judge Lucy Koh after she recused herself in July without giving a reason why — was the fact that Facebook said the settlement might cost it $100 million in advertising revenues, but only $20 million in a payout, and the $10 million the social network agreed to donate to charity “was merely plucked from thin air.”
Seeborg
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