A San Jose, California-based judge dismissed a lawsuit alleging LinkedIn purposely inflated the number of people watching their video ads so the social networking company could overcharge advertisers on Monday. The Microsoft-owned platform was accused of overcharging hundreds of thousands advertising partners.
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In the decision, U.S. Magistrate Judge Susan van Keulen said that while some of LinkedIn’s statements may have been misleading, the class of plaintiffs failed to show their legal remedies were inadequate before suing under two California laws that exclusively offered equitable relief such as restitution.
Judge van Keulen also said LinkedIn had no implied duty to provide “accurate ad metrics,” highlighting its disclaimer that explicitly states the brand was not responsible for click fraud or illicit third-party activity that could affect ad costs.
Advertisers in the proposed class action accused LinkedIn of inflating its metrics by counting video ad or “views” from users’ LinkedIn-connected apps, even when ads played only off-screen because users scrolled past them. The advertisers said the overcharges left them with less money to spend elsewhere, including on other advertising.
The lawsuit originated when LinkedIn announced in November of 2020 that its developers and engineers had successfully fixed software bugs that may have led to more than 418,000 overcharges. LinkedIn also stated it provided credits to virtually all affected advertisers, an “easy” solution since most charges were less than $25.
In August of this year, U.S. Magistrate Judge Susan van Keulen dismissed the fraud-based claims and an unfair competition claim brought by the class, saying the plaintiff advertisers did not show that LinkedIn made specific misrepresentations or that its conduct harmed the larger public population.
Judge van Keulen dismissed with prejudice the final piece of the suit Monday, meaning it cannot be brought again.
TopDevz Inc. of Sacramento and Noirefy Inc. of Chicago were two notable leaders of the lawsuit against the Sunnyvale, California-based LinkedIn.
LinkedIn has said since the suit was filed that it is “committed to the transparency and integrity of our ads products,” and the courts agreed Monday they did not fall short of that standard.
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