Google to pay $100 mn in ad lawsuit settlement

The lawsuit, originally filed in 2011, accused Google of undercutting promised discounts and charging advertisers for clicks outside the targeted geographic locations

by e4m Staff
Published: Apr 1, 2025 10:55 AM | 1 min read

In a move that brings the curtain down on a 14-year-old legal battle, Google has agreed to shell out $100 million to settle a class-action lawsuit that alleged the tech giant overcharged advertisers using its AdWords program (now known as Google Ads).

The lawsuit, originally filed in 2011, accused Google of two key things: undercutting promised discounts through its "Smart Pricing" system and charging advertisers for clicks outside their targeted geographic locations. The plaintiffs argued that this violated California's unfair competition law and resulted in advertisers paying more than they bargained for between 2004 and 2012.

Though Google has denied any wrongdoing, it agreed to settle, citing a desire to put the issue—centered around “legacy” ad products—behind it. The settlement, filed in federal court in San Jose, still awaits judicial approval. It covers advertisers who bought ads via Google AdWords between January 1, 2004 and December 13, 2012.

The legal back-and-forth included extensive evidence collection and multiple mediation rounds before both parties reached an agreement. As part of the deal, plaintiffs’ lawyers may request up to 33% of the settlement amount in fees, along with $4.2 million to cover litigation costs.

For advertisers, the case is a reminder that the fine print in automated ad pricing and delivery systems can sometimes come with a hefty price tag—especially when legacy tech meets modern scrutiny.

More than a decade later, the bill has finally come due.