Google’s Nextdoor ad service faces merger worries
Google’s nextdoor advertising service faces competition from new competitors in the advertising industry, and that could be enough to drive the company to the edge of bankruptcy.
The Google search engine is currently facing a class action lawsuit from its employees alleging that the company misled them about the safety of its AdSense platform and the extent of its advertising business.
A Google spokesman declined to comment on the lawsuit, citing the company’s confidentiality obligations.
Google, founded in 1998, is one of the most valuable companies in the world and its revenues have more than tripled in the past decade.
In a lawsuit filed Monday in a Florida federal court, the plaintiffs allege that Google deceived them about AdSense, the company-wide program that allows advertisers to place ads in Google searches.
They allege that AdSense users were tricked into thinking the ads were placed by the Google search algorithm rather than by human employees, and they were forced to sign a non-disclosure agreement that was misleading.
Google has been battling the suit, which is seeking damages of up to $2.8 billion, for years.
“The company is deeply concerned about the lawsuit and is committed to vigorously defending itself and its investors,” a Google spokesperson said.
Under the agreement, Google said it would pay $500 to the plaintiffs and $2 million in legal fees.
Google also said that if the lawsuit is successful, it will cease to provide the program.
The lawsuit, which was filed by three individuals, said that “at least five Google employees” and possibly more, were responsible for setting up and operating the program for “nearly a decade, with more than 20,000 accounts created and 11 million impressions processed.”
The lawsuit also alleges that at least a dozen Google employees had “direct control” of the program, and “a significant number” of accounts were “paid” or “created” by Google employees.
AdSense is one the most popular and widely used advertising networks, accounting for about 75 percent of Google’s advertising revenue.
As part of the settlement, Google will pay to settle the lawsuit in full for at least $500 million and will pay a further $1 million to the three plaintiffs.
The company also agreed to stop creating new accounts for anyone who had previously created one, and will require advertisers to disclose the identities of their customers if they are to be paid.
Read more: Google’s new ads program may leave Google with more debt than it had previously thought: source Politico article The company is currently battling the lawsuit for years over claims that it misled its employees about the health of its business and the scope of its marketing efforts.
The suit, filed in 2015, accused Google of misleading employees and customers, saying that its AdWords system could be vulnerable to hackers and that its network was “inherently susceptible to computer intrusion.”
The plaintiffs said in the lawsuit that the program was designed to help advertisers reach their audiences, but that in some cases Google employees were aware of flaws in the system that allowed hackers to steal information from users’ computers.
After a series of security breaches that were discovered by the FBI in 2017, the DOJ began investigating the matter and was able to prove that Google employees knew about the potential for security breaches and the potential loss of user data, the lawsuit said.