LinkedIn Agrees To $6.6 Mn Settlement Over Inflated Ad Metrics
The lawsuit alleged that LinkedIn counted video ad views from users’ LinkedIn apps even when the videos played off-screen as users scrolled past them
LinkedIn has consented to a USD 6.625 million settlement to resolve a proposed class action lawsuit that accused the platform of inflating video ad view metrics, resulting in advertisers being overcharged.
The preliminary settlement was filed in San Jose, California federal court and awaits approval by US Magistrate Judge Susan van Keulen. While LinkedIn denied any wrongdoing, it has committed to employing an external auditor for two years to review its ad metrics.
The lawsuit, initiated by advertisers TopDevz of Sacramento, California, and Noirefy of Chicago, alleged that LinkedIn counted video ad views from users’ LinkedIn apps even when the videos played off-screen as users scrolled past them.
This lawsuit emerged shortly after LinkedIn disclosed in November 2020 that software bugs had led to overcharges affecting more than 4,18,000 advertisers, mostly in amounts under USD 25. LinkedIn subsequently provided credits to nearly all impacted advertisers.
Covering US advertisers who purchased ads on LinkedIn between January 2015 and May 2023, the settlement underscores LinkedIn’s pledge to maintain the integrity of its ad products and ensure a trusted platform for its users and customers.
Advertisers’ lawyers may seek up to 25 per cent of the settlement amount, approximately USD 16,56,250, for legal fees. LinkedIn, based in Sunnyvale, California, is a unit of Microsoft, headquartered in Redmond, Washington. Judge van Keulen had dismissed the lawsuit in December 2021, but advertisers appealed and paused the appeal to mediate the dispute.
(Inputs from Reuters)
