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Monday, November 19, 2012

Judge Takes Facebook Inc (NASDAQ:FB)’s Offer Into Consideration In ‘Sponsored Stories’ Case


A US judge is considering a modified settlement proposal offered by Facebook Inc(NASDAQ:FB) in the class action suit over Sponsored Stories.

Facebook is trying to settle the case that is brought by angry people that the social network has broadcasted their Liked of particular companies as adverts without paying them for the same or providing them with a choice to pot out.

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It was earlier this year when Judge Richard Seeborg had rejected the first settlement that was offered by Facebook and which could have allowed members to decide how their personal data was used. However, it would not have eliminated its use and would have given $10 million as legal fees and $10 million to charity.

Seeborg has stated that the agreement was not good enough since it was not offering any money to the users of Facebook. Presently, Facebook is offering its users in the US, who appeared in a Sponsored Story without consent a sum up to $10 each from the same $20 million settlement deal. The case concerns potentially 100 million users, however, if the money did not all go to the company and the lawyers, the remaining will be given to charity.

The company has also said that it would make a new tool to let its members to see any Sponsored Stories that come up on their content and will have a choice to opt out.

Seeborg is considering the offer after a hearing last day in San Francisco court. He seemed pretty critical regarding the revised plan and promised a ruling very soon.

Seeborg has said that he will mull over the objections, as per the San Jose Mercury News. In case, he gives a clean chit to a preliminary approval of Facebook’s agreement offer, other third-party groups will be capable of opposing the offer before a final hearing happens. 

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