Hosting News
Google.com Faces Another Click Fraud Suit
July 21, 2008 |
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Google has been hit with a second lawsuit for fraud stemming from its parked
domains program, which serves ads on otherwise empty Web pages.
This latest suit, brought in federal district court in San Jose, Calif., comes
less than one week after attorney Hal Levitte filed a similar case.
In the new lawsuit, online retailer RK West, which operates the online store
Malibu Wholesale, alleges it purchased ads Google without realizing they would
appear on parked domains. Parked domains typically have no content other than
ads. RK West alleges that many of the clicks generated by parked domains are
"invalid."
The company said in its lawsuit that it had been charged for clicks from parked
domains "that had little relation to its business."
"Despite indication that some of the clicks from parked domains were invalid,
Google failed to disclose to the plaintiff specific domain names in which these
ads were clicked on, making detection of invalid clicks difficult and even worse
concealing any evidence of invalid clicks," the lawsuit alleges. RK West
eventually went through its server logs and discovered the source of the clicks,
said Alfredo Torrijos, one of the company's attorneys.
RK West does not define "invalid" in the complaint, but Torrijos said the
company took the position that clicks made by users who don't have a genuine
interest in making a purchase are invalid.
The company has alleged fraudulent concealment, unjust enrichment and a
violation of California's business code, and is seeking class-action status.
RK West's lead lawyer, Brian Kabateck of Kabateck Brown Kellner, has a history
of bringing click fraud lawsuits, having sued Google, Yahoo and IAC. His law
firm settled with Yahoo and joined in a $90 million settlement with Google.
In April he sued Google on behalf of David Almeida, who alleged that Google
tricked him into paying for AdSense ads on the company's publisher network, when
he only wanted his ads to appear on search results pages.
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