A preliminary approval was made by a US District Court Judge christina Snyder in Los Angeles last Wednesday regarding a settlement in a lawsuit that accused Yahoo for not providing adequate protection for advertisers agains click fraud.

Yahoo Inc. will consider refunding money to its advertisers dating back to Jan 2004. In addition, Yahoo will pay $5 million in legal fees to settle the class-action lawsuit.

A few months ago Google was on the same boat with $90 million but that is just a small amount compared to the billions of dollars it earned through advertising.

I believe internet advertising will still be a good business despite these lawsuits received by search engines. We will see stricter measures by google and yahoo and I expect the cost per click would dip a bit but will be compensated by additional volume as more advertisers will be using PPC strategy for their web marketing.

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