Saturday, August 18, 2012

Judge rejects Facebook settlement over ad feature

(Reuters) - A U.S. judge rejected Facebook Inc's proposed legal settlement to resolve allegations that the social networking company violated its members' rights through the its 'Sponsored Stories' advertising feature.

In an order on Friday, U.S. District Judge Richard Seeborg in San Francisco listed several concerns with the proposed settlement, including a request for more information on why the agreement does not award any money to members.

Seeborg said the company and attorneys for the plaintiffs could try to modify their agreement to address his concerns.

"We continue to believe the settlement is fair, reasonable, and adequate," a Facebook spokesman said in a statement. "We appreciate the court's guidance and look forward to addressing the questions raised in the order."

Representatives for the plaintiffs could not immediately be reached for comment. Read More