October 07, 2019

Facebook Inc. has agreed to pay $40 million to settle consolidated litigation in California federal court alleging it misled a proposed class of advertisers about how much time users spend watching paid video ads by using inflated video-viewing metrics.

In an Oct. 4 motion for preliminary settlement approval, the advertisers urged U.S. District Judge Jeffrey S. White to sign off on the deal, arguing that the settlement is fair and reasonable because it reflects a significant portion of the $100 million to $200 million that class members could expect to recover if they won at trial.

“Having recovered as much as 40% through settlement as they may have recovered after a trial, plaintiffs have no reservation in recommending that the court approve this settlement on behalf of the class,” the motion says.

If approved, the settlement would resolve litigation that was sparked after media reports revealed Facebook had purportedly touted inaccurate video ad metrics from May 2014 through September 2016.

In October 2016, multiple advertisers sued Facebook, claiming that the social media giant inflated those numbers by 60 to 80% and those misleading metrics indirectly impacted how much advertisers paid Facebook.

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The advertisers are represented by Robert Eglet, Robert Adams, Artemus Ham and Erica Entsminger of Eglet Adams, David Stein, Eric Gibbs and Aaron Blumenthal of Gibbs Law Group LLP, Andrew N. Friedman, Geoffrey Graber, Michael Eisenkraft and Eric Kafka of Cohen Milstein Sellers & Toll PLLC, Aisha Christian and Charles Reichmann of the Law Offices of Charles Reichmann and Joseph Motta of Rueb & Motta.