CLRB Hanson Industries and Howard Stern v. Google

Notice of Pendency and Proposed Settlement of Class Action and Settlement Hearing


According to the Notice below:

Representative Plaintiffs alleged five causes of action against Google: (1) Breach of Contract; (2) Breach of the Implied Covenant of Good Faith and Fair Dealing; (3) Violations of Cal. Bus. & Prof. Code � 17200, et seq. ("UCL"); (4) Violation of Cal. Bus. & Prof. Code � 17500, et seq. ("FAL"); and (5) Unjust Enrichment based on Google's alleged practice of (1) charging its AdWords advertisers up to 120% of their per day daily budget on any given day (Plaintiffs' "120% claims"); and (2) charging AdWords customers who paused their campaigns more than their per day Daily Budget times the number of days their campaigns were not paused during the billing period.

The Court dismissed the claims for breach of the implied covenant of good faith and fair dealing and unjust enrichment, and also held that Google's practice of charging AdWords Advertisers up to 120% of their daily budget on any given day does not, in and of itself, constitute breach of contract. However, the Court held that triable issues of fact existed as to whether Google's practice of charging up to 120% of an AdWords Advertiser's per day Daily Budget violates the UCL and FAL and whether Google's pre-September 2006 pausing practices constitute a breach of contract.

To settle this action, Google has paid $20,000,000 into escrow on behalf of the Class. The Settlement Proceeds would distributed to the Class in accordance with the terms of the Plan of Allocation described below.

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Reference Info:Federal, 9th Circuit, California | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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