Google to settle click-based advertisement class action for $100 million

SAN JOSE, Calif. (CN) — A federal judge Wednesday preliminarily approved a $100 million settlement between Google and advertisers through the tech company’s Google Ads program, who claim the company didn’t provide them a click-based discount on the ads they bought.

The settlement will close the book on a 14-year-old class action,**** only narrowly avoiding the trial it was scheduled for by seven weeks.

“After 14 years of contentious, hard-fought litigation, the parties have reached an agreement to resolve the classes’ claims against defendant Google LLC in exchange for a $100,000,000 cash payment,” the plaintiffs said in their settlement agreement.

In his 12-page order, U.S. District Judge Edward J. Davila said he would likely approve the agreement at a final fairness hearing later on, calling it “fair, reasonable and adequate to the classes.”

The tech giant seemed happy to be rid of the lawsuit.

“This case was about ad product features we changed over a decade ago and we’re pleased it’s resolved,” a Google Spokesperson told Courthouse News.

The class action, filed in 2011, claimed that the tech giant unfairly excluded clicks on mobile devices from its discount program between 2004 and 2011, which was marketed to advertisers. Under Google’s Smart Pricing package, customers could purchase ads at a discount based on a “conversion score” of the website where the advertisement appeared.

A conversion score divides the number of clicks that an advertisement gets by the number of purchases made as a result of the click-throughs to give advertisers an idea of how many clicks are actually leading to business.

The plaintiffs claim Google owed them a discount because of the conversion scores on their websites, but Google refused, saying it specifically exempted any clicks that originated from tablets or smartphones from the program.

Over the last 14 years, the plaintiffs, led by plaintiff Rene Cabrera, have filed five amended complaints, opposed five motions to dismiss, taken or defended 41 expert depositions, briefed two motions for summary judgment and successfully appealed the case’s dismissal to the Ninth Circuit.

Now, the settlement comes as the advertisers worried about the “significant challenges” they would face if they went to trial. As they explained, Google planned to individually target the two different subclasses the court had certified, looking to reduce the damages owed to each one or decertify them completely.

“Had Google prevailed on these challenges, the classes’ recovery would have been significantly reduced or eliminated,” the plaintiffs said.

The advertisers said the $100 million settlement amount represents an estimated 13.9% to 18.8% of their total claimed damages, but maintained that it was a “particularly favorable” outcome.

Meanwhile, the plaintiffs’ attorneys are asking for 33% of the settlement fund, citing the estimated 34,000 hours they’ve dedicated over the life of the lawsuit, with an approximate labor cost of $22.5 million.

The plaintiffs’ attorneys are also asking for an additional $4.2 million to cover expenses, which include the retention of experts and consultants used in the case, four private mediation sessions between parties, online legal and factual research costs as well as travel expenses.

Attorneys for the plaintiffs did not immediately respond to a request for comment.

The court will hold a final fairness hearing on Aug. 21, 2025, at the Robert F. Peckham Federal Building and U.S. Courthouse.