A US judge has approved settlement of a click-fraud case brought by online advertisers against Yahoo.
The advertisers had accused Yahoo of not adequately protecting them against click fraud – the practice of clicking on online advertisements to drive up a business rival's costs or to earn commission for hosting online ads.
Some of the ads subject to a Yahoo click-fraud investigation appeared on Yahoo’s partner sites. The lawsuit was brought by a private investigation firm as a class action.
Under the settlement, Yahoo will pay around $5m (£2.85m) to cover the claimants’ legal fees.
Yahoo will also extend the period for reviewing advertiser click-fraud complaints to include disputed charges since January 2004.
Yahoo had originally committed itself only to looking at disputed charges within the past 60 days.
If anomalies are found going back to 2004, Yahoo may have to shell out large amounts to advertisers who have been the victims of click fraud.
Google and other web portals have also undergone click fraud investigations after complaints from advertisers.