LinkedIn has agreed to pay $6.625 million to settle a proposed class action lawsuit accusing the social networking page of inflating the number of views on video ads.
The preliminary settlement was filed last week in the San Jose, California federal court, and awaits approval from US Magistrate Judge Susan van Keulen before the payout is confirmed.
LinkedIn, which has denied any wrongdoing, has committed to employing an external auditor for two years to review its ad metrics.
LinkedIn accused of inflating video ad views
The lawsuit stems from a complaint by Sacramento, California-based TopDevz, a team of developers, designers, project managers and quality assurance testers, who claimed that LinkedIn exaggerated ad views by counting video plays on its app even when users scrolled past them.
The legal action came just a couple of weeks after the Microsoft-owned platform confirmed that it had corrected software bugs that resulted in more than 400,000 overcharges – a mistake that LinkedIn rectified by issuing credits to many affected advertisers.
The $6.625 million settlement covers US advertisers who bought ads on the platform between January 2015 and May 2023, who were subsequently overcharged to cover an exaggerated number of views.
LinkedIn parent company, Microsoft, confirmed a 17% increase in revenue for the three months that ended March 31. Total company revenue sat at $61.9 billion, with LinkedIn seeing a 10% increase in its revenue. Microsoft is expected to announce its latest quarterly figures tomorrow.
TechRadar Pro has asked the company to comment on the lawsuit, but we did not receive an immediate response.
More from TechRadar Pro
These are the best social media management toolsLinkedIn reveals first games you can play while pretending to workWant to reach a wider audience? Check out the best online marketing services
LinkedIn accused of exaggerating video ad views for eight year, resulting in a multimillion-dollar settlement figure. Read MorePro TechRadar – All the latest technology news