Facebook settles sponsored stories suit for $10M

Jun 17, 2012 - 14:27
Jun 17, 2012 - 17:23
 0  1
Facebook settles sponsored stories suit for $10M
Facebook settles sponsored stories suit for $10M

Facebook is paying $10 million to settle a lawsuit over ads that it called sponsored stories.

Facebook's service allowed companies to pay to retransmit users' activities to their friends' pages. If a user clicked the \"like\" button for a brand, the click might show up as a \"sponsored story\" on friends' pages. The ads started in early 2011.

Some Facebook users sued, saying that Facebook used their images for commercial activity. Facebook had argued that the plaintiffs did not show they were hurt by the practice.

Court documents from late last week say a settlement has been reached. Facebook attoey Michael Rhodes confirms Sunday that it's for $10 million, which will be given to charity. A judge still needs to approve the settlement.

Reuters first reported details of the settlement.

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Mike Gallagher Mike Gallagher is a Georgia-based freelance journalist covering local news, community developments, and regional issues that matter most to residents across the state. Writing for Georgianewsday.com since 2016, Mike has built a reputation for clear, balanced reporting and a strong connection to the communities he serves. His work spans city council decisions, school board updates, small business features, public safety reports, and statewide policy changes. In addition to local coverage, Mike occasionally reports on state politics and national headlines, offering readers context on how broader decisions impact Georgia communities. Known for his steady, fact-driven approach, Mike prioritizes accuracy, fairness, and accessibility in every story. Whether covering a town hall meeting or breaking political developments, he aims to inform readers with clarity and integrity. Outside the newsroom, Mike remains actively engaged in Georgia’s civic landscape, always seeking the next story that shapes the state’s future.