Settlement In Sponsored Stories Class-Action Suit Vs. Facebook Receives Preliminary Approval

By David Cohen 

The class-action lawsuit against Facebook over the use of users’ images in sponsored stories moved one step closer to resolution Monday, as U.S. District Court Judge Richard Seeborg ruled that Facebook’s proposed settlement meets the requirements for preliminary approval.

The San Jose Mercury News reported that Seeborg said in his order that the settlement offer by the social network “has no obvious deficiencies” and “appears to be the product of serious” negotiations between lawyers for Facebook and the group of users who filed suit.

The nonprofit Center for Public Interest Law, however, had argued that Facebook should be required to obtain affirmative consent before using the names or photos of Facebook users under the age of 18, and its attorney, Robert Fellmeth, said he would file a further objection and, if necessary, pursue the case in appellate court, the Mercury News reported.

Last month, Facebook revamped its original settlement proposal to provide for payments of $10 to each user out of its total settlement fund of $20 million, with the remainder of the money going to charity, quelling earlier protests that affected users would not see any money.

Facebook also said in its revised settlement that it would create a new tool that would allow users to view any of their content that may have been used as part of sponsored stories and opt out of the process.

Readers: Do you think this case is finally nearing its end?

Image courtesy of Shutterstock.