Google Settles AdWords Lawsuit for $20 Million, Drops AdSense Program

Apr 03, 2009

Google has agreed to pay plaintiffs in the AdWords lawsuit $20 million, according to reports. Google also agreed to pay the plaintiff's lawyers more than $5 million. The class-action lawsuit was filed in 2005 by two small business advertisers, CLRB Hanson Industries, a printing company based in Minnesota, and New Jersey resident, Howard Stern.

Google also announced it is discontinuing its Video AdSense program. By the end of April, publishers will no longer be able to sign up for the revenue-sharing service, and those with AdSense videos embedded on their page will have their videos replaced. Publishers will still be able to embed YouTube videos onto their pages, but they would have to do it by going directly to the site and pulling embed code from individual videos. Under the current AdSense program, publishers sign up through a dashboard provided by Google where they can choose what videos to be included in their AdSense player. According to a Google blog, this did not work well enough.