CJ proposes $1 Million settlement over Malware Class Action
The class action filed against ValueClick subsidiaries CJ.com and BeFree has taken a new turn with ValueClick proposing a $1,000,000 settlement fund to be distributed to members of the class action suit.
The lawsuit was originally filed against CJ after the legal team for the class action determined that CJ allowed software publishers to highjack commissions due to other publishers using methods including downloadable toolbars, purchase helpers and other hidden software.
Terms of the settlement as outlined on http://www.cjsettlement.com are not only financial, but force CJ to have independent reviews and audits done on their practices & systems for managing network quality.
A settlement of this nature, if accepted by the courts, opens the doors to further similar class actions against other networks. I expect to see more lawsuits being filed against both CPA and Affiliate networks.
Interestingly enough an excerpt of the settlement agreement states:
â€œAfter deducting for payment of any money awarded by the Court in connection with representation of the Class in this litigation and settlement (for example, Incentive Awards made to the named plaintiffs, consulting fees, certain costs of class settlement administration, and related expenses), the balance of the Common Fund shall be allocated 70% to the Publishers and 30% to the Advertisers in a Publisher Fund and an Advertiser Fund.â€
A review of the attorneyâ€™s fees, administration fees and other costs show that the biggest winners will indeed be the lawyers that filed the claim. They stand to get up to $500,000 of the settlement.
Youâ€™ve got to love America 😉