Judge rejects Facebook's "Sponsored Stories" settlement

In June, it was revealed that Facebook had entered into an agreement to settle a lawsuit surrounding its Sponsored Stories feature. The class action lawsuit claimed the company was publicizing users' "likes" of Sponsored Stories without payment or offering a way to opt out of having their "likes" featured.

Now the judge presiding over this case has decided that the settlement agreement is not good enough. Reuters reports that late on Friday, US District Judge Richard Seeborg rejected Facebook's first attempt to settle the case.

Under the previous settlement's terms, Facebook would have paid $10 million to an unnamed charity to settle claims that Facebook was in violation of a California law, along with another $10 million to pay for the plaintiffs' legal fees.  Facebook has also agreed to give users more control over their their personal information on the service.

However, Judge Seeborg said in his decision that he had a number of issues with the settlement. One of them was why none of the plaintiffs in the case received any direct money from Facebook.

In a statement, Facebook said, "We continue to believe the settlement is fair, reasonable, and adequate. We appreciate the court's guidance and look forward to addressing the questions raised in the order."

Source: Reuters

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