LinkedIn Settles $6.6 Million Lawsuit Over Video Ad Measurement Discrepancies

LinkedIn to pay $6.6 million to settle video ad overcharging claims - Times of India

LinkedIn has agreed to pay $6.625 million to settle a class-action lawsuit accusing the Microsoft-owned platform of overcharging advertisers for video ad views. The settlement, filed in a California federal court on Thursday, alleges that LinkedIn inflated the number of people who watched video ads by counting views even when videos played off-screen.While LinkedIn denies any wrongdoing, it has agreed to hire an outside auditor to review its ad metrics for two years. The lawsuit was initiated in 2020 after LinkedIn disclosed software bugs that led to overcharges for over 400,000 advertisers. Although the company provided credits to most affected advertisers, the class action sought damages for a broader group of advertisers. The settlement now requires approval from a federal judge. If approved, advertisers who purchased LinkedIn ads between 2015 and 2023 may be eligible for compensation. LinkedIn has emphasized its commitment to ad integrity and providing a trusted platform for its users. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.

Microsoft's LinkedIn agrees to pay $6.625 million to settle this lawsuit - Times of India

Microsoft-owned LinkedIn has agreed to pay $6.625 million to settle a class-action lawsuit alleging that the platform overcharged advertisers for video ad views. The lawsuit claimed LinkedIn inflated view counts by including off-screen video plays. According to a report by news agency Reuters, LinkedIn denied any wrongdoing and said that it will implement measures to independently audit its ad metrics for the next two years.The settlement covers US advertisers who purchased LinkedIn ads between 2015 and 2023, the report added. A preliminary settlement was filed in San Jose, California federal court this week. Microsoft's profit totaled $66.1 billion in the nine months ending March 31. What is the case all about The case stems from a 2020 incident where LinkedIn disclosed software bugs that led to overcharging some advertisers. The company provided credits to affected customers at the time. The lawsuit began two weeks after LinkedIn disclosed in November 2020 that its engineers fixed software bugs on the business-focused social media platform that may have led to more than 418,000 overcharges, most under $25. Judge van Keulen had dismissed the lawsuit in December 2021 but Advertisers appealed and the appeal was put on hold so both sides could mediate the dispute. In 2021, LinkedIn said that it looked forward to showing the claims lacked merit and said it was "committed to the transparency and integrity of our ads products." The judge dismissed fraud-based claims and an unfair competition claim, saying the plaintiff advertisers did not show that Linkedin made specific misrepresentations or that its conduct hurt the public at large. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.

LinkedIn Agrees To Pay $6.625M To End Ad View Inflation Feud: Report - Microsoft (NASDAQ:MSFT)

The lawsuit, filed after LinkedIn fixed $418K in potential overcharges, led to a proposed settlement and potential $1.65M in legal fees. LinkedIn has reportedly agreed to pay $6.625 million to resolve a proposed class action alleging that the Microsoft Corporation MSFT unit inflated video ad view counts to overcharge advertisers. A preliminary settlement was filed late Thursday in federal court in San Jose, California, and is pending approval by U.S. Magistrate Judge Susan van Keulen, Reuters reported. LinkedIn denied any wrongdoing but agreed to make reasonable efforts for two years to hire an external auditor to review its ad metrics. Advertisers, including TopDevz of Sacramento and Noirefy of Chicago, accused LinkedIn of inflating ad metrics by counting video ad "views" from users' LinkedIn apps, even if the videos played off-screen as users scrolled past. Also Read: 'Markets Are Sounding An Alarm:' Peter Schiff Warns Federal Reserve Should Cut Rates Before Recession Hits The lawsuit was filed shortly after LinkedIn revealed in November 2020 that software bugs had been fixed, which had caused over 418,000 potential overcharges, mostly under $25, Reuters added. Judge van Keulen dismissed the lawsuit in December 2021, and although the advertisers appealed, they paused the appeal to allow for mediation. The advertisers' lawyers may request up to $1.656 million, or 25% of the settlement amount, for legal fees. The case is In re LinkedIn Advertising Metrics Litigation, U.S. District Court, Northern District of California, No. 20-08324, Reuters added. Price Action: MSFT shares are trading higher by 2.16% to $427.44 at last check Friday. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo by IB Photography on Shutterstock Read Next: Bill Ackman's US Fund IPO Target Slashed By 90% As Pershing Square 'Specifically Disclaims' CEO's Comments Market News and Data brought to you by Benzinga APIs