LinkedIn settles advertisers' lawsuit over alleged overcharges for $6.625 million

LinkedIn settles ad dispute: LinkedIn has agreed to pay $6.625 million to resolve a proposed class action lawsuit accusing it of inflating video ad view counts, which allegedly led to overcharges for advertisers. 

The settlement was submitted on Thursday in a San Jose, California federal court and is pending approval from US Magistrate Judge Susan van Keulen.

Auditor to review metrics

While LinkedIn has denied any wrongdoing, the company has committed to hiring an external auditor over the next two years to review its advertising metrics. 

The lawsuit, filed by advertisers including TopDevz from Sacramento and Noirefy from Chicago, claims LinkedIn overstated video ad views by counting instances where users only scrolled past the videos without actually viewing them.

The dispute surfaced shortly after LinkedIn revealed in November 2020 that software bugs had likely resulted in overcharges affecting more than 418,000 advertisers, with most overcharges being under $25. LinkedIn had already issued credits to nearly all the affected advertisers.

The settlement pertains to US advertisers who purchased ads on LinkedIn from January 2015 to May 2023.

Upholding ad standards

LinkedIn stated that the settlement reflects its dedication to maintaining the integrity of its advertising products and offering a reliable platform for its users.

Judge van Keulen had initially dismissed the lawsuit in December 2021, but the advertisers appealed and subsequently paused the appeal to facilitate mediation. 

The advertisers' legal team may seek up to $1,656,250, or 25 per cent of the settlement, for legal fees.

The case is In re LinkedIn Advertising Metrics Litigation, US District Court, Northern District of California, No. 20-08324.

(With Reuters Inputs)