Class-Action Lawsuit Alleging 'Click Fraud'

Thursday, September 15, 2005

A federal appeals court says a class-action lawsuit alleging "click fraud" by Google Inc. and other Internet companies should be heard in state court rather than in a federal courtroom.

The 8th U.S. Circuit Court of Appeals said Sept. 8 that the lawsuit, filed initially by a Texarkana gift shop, would be heard in Miller County Circuit Court. Defendants wanted the case tried in federal court.

John C. Goodson and Dallas lawyer Joel Fineberg filed the lawsuit Feb. 4 against Google, Yahoo! Inc., Overture Services Inc., America Online Inc., Ask Jeeves Inc., Looksmart Ltd., Lycos Inc., Netscape Communication Corp., Buena Vista Internet Group, Findwhat.Com Inc. and Time Warner Inc.

Lane's claims the Internet companies knowingly overcharged it and other companies for "pay per click" advertising, and that the Internet companies conspired to create an online environment that harms advertisers.

The suit by Lane's Gifts and Collectibles of Texarkana was filed before President Bush signed legislation that funnels most class-action lawsuits to federal court.

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