Yahoo Settles Ad Placement Lawsuit

SUNNYVALE, Calif. — Yahoo Inc. has settled a class-action suit after unhappy search-advertising customers sued the company over where their pay-per-click ads were showing up.

On Tuesday, lawsuit administrator Rust Consulting, a third-party firm based in Minnesota, sent an email to members of the class that preliminary court approval of the settlement has been granted.

Yahoo customers who sued claimed that when ads they placed through Sponsored Search and Contact Match, they showed up in spyware, parked sites, typosquatting sites and other dark corners of the web. The ads were supposed to appear on "highly targeted" sites.

Yahoo’s clients sued the Sunnyvale company for breach of contract, unjust enrichment, misrepresentation, civil conspiracy, and unfair business practices.

Yahoo agreed in the accord to offer a new filtering option for ads and to modify how it handles disclosures and click-fraud investigations. It also agreed to develop and offer a way for customers to control where their Yahoo Ads appear.

Yahoo will create an Ad Placement Option for advertisers to guarantee their ads will appear only on sites owned by Yahoo or sites designated as premium partners. That feature should appear early next year but Yahoo has a deadline of Sept. 30 to provide advertisers with that option.

Advertisers also will get better tools for measuring traffic quality and potentially troubling sites bearing their ads.

Yahoo class litigants are eligible for a $20 settlement, as well. The litigants must submit a claim by March 22; those ready to sue Yahoo individually need to exclude themselves from the settlement by Dec. 14.

All told, Yahoo plans to divey out $4.3 million to its clients with the agreement. Attorney fees will reach about $4.2 million.

Yahoo Settlement Agreement

Related:  

Copyright © 2025 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

Pineapple Support Marks 7th Anniversary

Pineapple Support is marking its seventh anniversary by citing its accomplishments and noting its challenges.

'Over the Top' North Carolina Bill Could Play Havoc With Adult Sites

A bill filed in the North Carolina state Assembly on Monday would impose new rules that industry observers warn could push adult websites and platforms to ban most adult creators and content.

Swedish Government Proposes Ban on Purchasing 'Remote' Sexual Services

The Swedish government has asked the country’s Parliament to amend Swedish law so that current laws against purchasing sexual services would also apply to acts performed remotely by cammers, streamers and custom content creators.

PASS Announces New Membership Program for All Adult Industry Workers

Performer Availability Screening Services (PASS) has announced a new membership program for all sectors of the adult industry.

Jewelz Blu, Stripchat to Host XSIV Magazine Launch Party

2025 XMAs winner Jewelz Blu will host an invite-only launch party for the Music issue of XSIV Magazine at Stripchat XSIV House on April 19.

Ofcom: Age Assurance Going Live Across 'Thousands' of Porn Sites

U.K. communications regulator Ofcom said in a statement Thursday that providers of online pornography are implementing age assurance across “thousands of sites” accessible in the U.K., in response to Ofcom’s Online Safety Act (OSA) enforcement program.

ASGMax Debuts 'Roleplay' AI Chat Feature

Alpha Studio Group (ASG) has introduced the ASGmax Roleplay AI chat feature.

XBIZ Miami's Host Hotel Sold Out, General Registration Now Open

Guest rooms at XBIZ Miami’s exclusive conference venue, Nautilus Sonesta Miami Beach hotel in South Beach, are now completely sold out.

Adult Industry Educational, Networking Platform 'Imperfectly You' Launches

Imperfectly You, an educational and networking platform for adult industry workers, has officially launched.

Segpay to Launch News Network for High-Risk Merchants

Segpay has announced that it will launch the Segpay News Network (SNN) on April 15.

Show More