LinkedIn to Pay $6.625 Million to Settle Overcharging Allegations
LinkedIn has agreed to a $6.625 million settlement to resolve a proposed class action lawsuit accusing the Microsoft-owned platform of overcharging advertisers by inflating video ad view metrics.
Settlement details
The preliminary settlement, filed in federal court in San Jose, California, awaits approval from U.S. Magistrate Judge Susan van Keulen. LinkedIn, while denying any wrongdoing, has also committed to hiring an outside auditor for two years to review its ad metrics.
Allegations
The lawsuit, led by advertisers TopDevz of Sacramento, California, and Noirefy of Chicago, accused LinkedIn of counting video ad “views” from users’ apps even when videos played off-screen as users scrolled past them. The legal action was initiated two weeks after LinkedIn disclosed in November 2020 that software bugs might have caused over 418,000 overcharges, mostly under $25. LinkedIn subsequently provided credits to nearly all affected advertisers.
The settlement covers U.S. advertisers who purchased ads on LinkedIn between January 2015 and May 2023. In a statement, LinkedIn emphasized its commitment to ad product integrity and maintaining a trusted platform for its users and customers.
Judge van Keulen had dismissed the lawsuit in December 2021, but the advertisers appealed and paused the appeal to mediate the dispute. Lawyers for the advertisers may seek up to 25% of the settlement amount, equating to $1,656,250, for legal fees.
