Judge Rejects Facebook "Sponsored Stories" Settlement Offer As Stock Price Plummets
August 20, 2012 10:15 AM
comment(s) - last by
Facebook has definitely seen better days
Facebook has been fighting a lawsuit over its "Sponsored Stories" advertising feature. The company
previously offered to settle the suit for $10 million
, which would be given to charity. However, U.S. District Judge Richard Seeborg has listed concerns with the proposed settlement and issued a request for more information on why the agreement doesn't award money to social network members.
Judge Seeborg stated that Facebook and attorneys for the plaintiffs could modify the proposed settlement to address his concerns.
"We continue to believe the settlement is fair, reasonable, and adequate," a Facebook spokesman said in a statement. "We appreciate the court's guidance and look forward to addressing the questions raised in the order."
was originally filed by five different Facebook members who claim that the Sponsored Stories feature violated California law by publicizing the "likes" of users without paying the user or giving them away to opt out. The case covers 100 million potential class members.
Part of the Facebook proposed settlement included ways for users to have more control over how their information is used. In addition to the $2 million to be paid to charity, Facebook also agreed to pay $10 million for legal fees.
While Facebook reconsiders its settlement offer, the company stock is plummeting after its IPO brought such high hopes for investors. The company stock recently fell to half its IPO price. As of this morning, Facebook stock is
trading below $18 per share
, half the IPO market value in May.
This article is over a month old, voting and posting comments is disabled
RE: Cause of the problem
8/20/2012 1:34:51 PM
Hello. Did you just wake up and smell the coffee or roll out of the right side of the bed this morning.:)
"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs
Facebook Must Pay $10M for "Sponsored Stories" Lawsuit Settlement
June 18, 2012, 11:40 AM
Quick Note: Google Drive 100GB, 1TB Plans See Major Price Cuts
March 13, 2014, 2:45 PM
Target Missed Early Warning Signs of Holiday Data Breach
March 13, 2014, 1:45 PM
Amazon Increases Prime Subscription to $99/year Starting March 19
March 13, 2014, 8:23 AM
Bitcoin King's American Accounts Get Frozen
March 13, 2014, 3:00 AM
Time Warner Cable CEO Says Merger with Comcast is a "Dream Combination", Will Increase Innovation
March 12, 2014, 2:37 PM
North Carolina-based Company to Offer Gigabit Internet Before Google
March 12, 2014, 2:31 PM
Most Popular Articles
Bitcoin King Pt. II: Mt. Gox's Dictator Karpelès Proves Tragically Flawed
March 7, 2014, 1:12 PM
Windows 8.1 Update 1 Leaked Early
March 7, 2014, 9:30 AM
Hack Reveals Fallen Bitcoin CEO's Posh Tokyo Penthouse
March 10, 2014, 4:28 PM
Staples Closing 225 Stores Across North America
March 7, 2014, 1:24 PM
Vine Users No Longer Allowed to Post Pornographic Videos
March 7, 2014, 1:47 PM
Latest Blog Posts
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information