LinkedIn to Settle $6.625 Million in Class-Action Lawsuit

LinkedIn has agreed to pay $6.625 million to settle a proposed class-action lawsuit accusing the company of overcharging advertisers by inflating the number of views on video ads.

The preliminary settlement, filed in a federal court in San Jose, California, requires approval from U.S. Magistrate Judge Susan van Keulen.

Background and Allegations:

Advertisers, including TopDevz from Sacramento and Noirefy from Chicago, claimed that LinkedIn inflated ad metrics by counting video ad “views” even when users did not actually watch the videos but simply scrolled past them.

LinkedIn disclosed this issue in November 2020, revealing that software bugs might have resulted in more than 418,000 overcharges, most of which were under $25. Following this disclosure, LinkedIn provided credits to nearly all affected advertisers.

Settlement Details:

The settlement covers U.S. advertisers who bought ads on LinkedIn from January 2015 to May 2023. LinkedIn has denied any wrongdoing as part of the agreement but has committed to hiring an outside auditor over the next two years to review its ad metrics. The advertisers’ lawyers may seek up to $1,656,250, or 25% of the settlement amount, for legal fees.

LinkedIn Statement:

In response to the settlement, LinkedIn stated that the agreement emphasizes its dedication to maintaining the integrity of its ad products and providing a trustworthy platform for members and customers.

The case, titled “In re LinkedIn Advertising Metrics Litigation,” is being handled in the U.S. District Court for the Northern District of California under case number 20-08324.