X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
The lawyer for a gift shop at the center of a hoped-for class action lawsuit told a federal judge Friday that the case should be heard in state court, where proceedings started before Congress passed a law moving most class action lawsuits to federal court. Lane’s Gift and Collectibles of Texarkana, Ark., sued America Online, Google, Yahoo and other Internet providers, saying they knowingly overcharged it and other companies for “pay per click” advertising. It seeks class action status for its lawsuit. The Internet companies succeeded last month in having the case moved to U.S. District Court before Judge Harry Barnes. Lane’s asked Barnes on Friday to send the case back to Miller County, where the lawsuit started Feb. 4. Two weeks later, on Feb. 18, President Bush signed a law designating that federal courts would be the primary location for class action lawsuits. Moving the case to federal court, as the Internet companies requested, was improper, gift shop lawyer Joel Fineberg said. Under the new law, class action suits seeking $5 million or more would be heard in state court only if the primary defendant and more than one-third of the plaintiffs are from the same state. But if fewer than one-third of the plaintiffs are from the same state as the primary defendant, and more than $5 million is at stake, the case would go to federal court. Jennifer Doan, representing Google, said outside court that federal court is the proper forum. The lawsuit says Internet companies charged Lane’s and others for advertising traffic not generated by bona fide customers. The gift shop alleges a conspiracy in which the companies worked with one another to create an online environment that harms advertisers. In the online advertising world, businesses pay Internet providers a fee based on the number of times their ads are “clicked.” The click takes would-be customers to another page for more information. Lane’s said ads are often clicked only to generate a bigger bill for advertisers, not by someone truly seeking more information. Estimates vary widely on how much click fraud occurs in the $3.8 billion search engine advertising market. Defendants in the Arkansas case include Yahoo! Inc., Overture Services Inc., Time Warner Inc., America Online Inc., Netscape Communications Corp., Ask Jeeves Inc., Buena Vista Internet Group doing business as Go.Com, Google Inc., Lycos Inc., Looksmart Ltd. and Findwhat.com Inc. Copyright 2005 Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

Want to continue reading?
Become a Free ALM Digital Reader.

Benefits of a Digital Membership:

  • Free access to 1 article* every 30 days
  • Access to the entire ALM network of websites
  • Unlimited access to the ALM suite of newsletters
  • Build custom alerts on any search topic of your choosing
  • Search by a wide range of topics

*May exclude premium content
Already have an account?

 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.