Facebook Settlement Was 'Overly Charitable'

Normally, when a class-action law suit gets settled, that’s the end of it, but when Facebook recently made a settlement in a privacy suit, they were criticized for being overly generous. The 2008 suit has to do with Facebook’s alleged improper sharing of inforrmation about users online purchases and other activities.

The criticism stems from a common practice in U.S. courts. If a class-action suit’s settlement monies are not easily distributable to members in the suit (or if the cost of doing so exceeds the settlement), then a judge can award part or all to a charity of their choosing.