Google settles lawsuit over AdWords budget limits

Google reportedly agrees to pay lawyers fees and plaintiffs, and offer ad credits to advertisers in settlement of AdWords lawsuit.

Google has settled a lawsuit filed by advertisers who claimed they were charged for more ads through the AdWords system than they had agreed to pay for.

Under the settlement, two named plaintiffs will each receive $20,000, other marketers will get ad credits and Google agreed to pay the plaintiffs' lawyers more than $5 million, according to MediaPost.

The lawsuit, filed in 2005 in Santa Clara Superior Court in California, named as plaintiffs printing company CLRB Hanson Industries of Minnesota and Howard Stern of New Jersey (no relation to the radio personality). It alleged that Google misrepresented what constitutes daily budget limits.

A Google spokesman provided this comment on the settlement: "Google believes the claims are without merit, but we are pleased to have the litigation behind us and to move forward with our business objectives."

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