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Google Inc said on Wednesday it had agreed to pay up to $90 million to settle its part of an industrywide lawsuit alleging Web search companies overcharge some advertisers by billing them for false customer leads.
Google's proposed class action settlement stems from a suit filed a year ago by several plaintiffs, including Lane's Gifts and Collectibles, in an Arkansas state court. It covers abuse of Google's pay-per-click advertising system by outside parties.
The deal aims to resolve all outstanding claims against Google for so-called "click fraud" dating back to 2002, a spokesman said, but similar claims against the Mountain View, California-based company are outstanding in other courts.
At issue is "click fraud", the abuse of search advertising systems for the purpose of driving up advertiser fees. It involves a malicious party repeatedly clicking on an advertising link and so generating a commission payment with each click.

Copyright Reuters, 2006

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