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<b><i>Online Extra</b></i> Court Approves Facebook Class Settlement, Shaves Attorney Fees
In a long-awaited conclusion to Facebook's “Sponsored Stories” class action saga, a federal judge gave final approval to a $20 million settlement on August 26 but took an axe to the $7.5 million in fees requested by plaintiffs attorneys.
The settlement approved by U.S. District Judge Richard Seeborg provides for each Facebook user who submitted a valid claim to receive $15, with remaining funds disbursed to 14 organizations focused on consumer protection, privacy and other issues raised in the suit. Facebook Inc. is also required to improve its disclosure practices, giving users more control over when and how their names and photos will be used. The company must also create special controls for minors.
“We are pleased that the settlement has received final approval,” a Facebook spokeswoman said in a statement.'Fraley v. Facebook, 11- 1726, was filed in March 2011 on behalf of some 150 million social network users whose names and likenesses were used to promote products and services through Facebook's “Sponsored Stories” advertising feature.
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