Google was lax in preventing fraud, plaintiffs claim

TEXARKANA, Ark. -- Plaintiffs in a class action argued yesterday that Google has not exercised reasonable care to prevent ``click fraud" and has misrepresented efforts to stop swindlers from repeatedly clicking website links to drive up advertising costs.

A judge is considering whether to accept a $90 million settlement offer from Google Inc. A Texarkana company, Lane's Gifts and Collectibles, filed the suit, which was certified as a class action.

Plaintiffs say Google has not done enough to stop click fraud, which drives up advertisers' bills by falsely indicating the number of users who have ``clicked" on an Internet ad to seek more information about a product.

Under the deal, plaintiffs' lawyers would receive $30 million; $60 million would be distributed as Google advertising credits. No advertiser would receive cash. More than 70 companies objected, mostly smaller ones with fewer resources to research their claims.