Facebook will reportedly pay around $40 million in a proposed settlement with advertisers.
Facebook is facing a lawsuit from advertisers claiming, among other things, that they inflated the average time its users spent watching video. Under the class action lawsuit settlement, much of the money would go to people who paid for advertisements, though $12 million, or 30% of the settlement fund is earmarked for plaintiffs’ attorneys.
The plaintiffs estimate that had they gone to trial, they may have recovered between $100 to $200 million in damages, though that was not a uncertainty and court costs were estimated to be substantial. U.S. District Court Judge Jeffrey White will decide on approval after examining the fairness of the pact.