Google settles AdWords overcharge spat

A class-action lawsuit served on Google by AdWords advertisers who were charged more than their Daily Budget plan should have allowed, will be awarded up to $20,000 under the terms of a settlement reached this week. Meanwhile, the lawyers who brought the suit were awarded up to $5 million, plus expenses, for their trouble.

The suit covered AdWords advertisers who signed on between June 1, 2005 and February 28, 2009, and who were charged more than their Daily Budget on any day during that period, sometimes by as much as 120%. Advertising resellers are not included in the class. Google files four motions for partial summary judgment in the matter, then chose the settlement route -- admitting no liability or guilt, but apparently deciding that a $20,000,000 settlement was less of a nuisance than continued litigation. (The $20 million was put into an escrow account at the end of March.) Much of the payout will be offered in the form of ad credits for marketers.

From the language in the settlement, it doesn't sound as if the plaintiffs were too convinced of their case either. "Google has denied, and continues to deny, each and all claims of wrongdoing against it and continues to assert defenses thereto, and has expressly denied any wrongdoing or legal liability out of any of the conduct alleged in the Action," reads the Statement Of Potential Outcome To The Case. "Google denies that Representative Plaintiffs or the Class have suffered any damages or are entitled to any restitution. Representative Plaintiffs considered that there was a substantial risk that they and the Class might not have prevailed on their claims and that there were risks that they and the Class could have recovered substantially less than the settlement amount, if the case had been litigated to judgment."

If you're a likely recipient, you have already or should soon receive documentation to that effect by mail, with instructions as to how to proceed to collect. All claims must be filed by July 14, 2009.