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Class action against Facebook reaches settlement

On Behalf of | Oct 15, 2019 | Class Actions

Class action lawsuit can often be complicated matters that may seem daunting to the average Charleston resident (thus potentially deterring them from joining in one even if they have a valid claim). Understanding the nuances of such an action may go a long way in assuaging one’s fears. One of the most misunderstood aspects of a class action is the actual formation of the class. In essence, however, the concept of class is relatively simple: a group of people who have a shared grievance against a single party. That group can be as small as a few people, or a body of millions of organizations. 

The latter is what was present in a recent class action lawsuit filed against the social media giant Facebook. In its complaint, the plaintiffs argued that faulty watch time metrics (the information detailing how long viewers were actually watching ads on Facebook) influenced them to spend more in advertising dollars than they would have had they known the real numbers. Facebook’s representatives recognized the error, yet claimed that it did not result in a single advertising partner being overcharged. 

Even still, the company agreed to settle the lawsuit for $40 million ($12 million of which will reportedly go towards paying legal fees). In all, 1.35 million advertisers could benefit from the settlement. 

While few class action lawsuits may reach this size and scope, this particular case demonstrates the fundamental principles behind class actions. They represent  an effective way for multiple parties who have been wronged to mount a collective argument. Those needing to initiate such a legal argument may first want to consult with an experienced attorney. 

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