Facebook Inc. (FB) Facing a Click Fraud Lawsuit?

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This case goes back to 2009, when a judge ruled that the contract between Facebook Inc. (NASDAQ:FB) and pay-per-click marketing firms stipulated no Facebook liability for fraudulent clicks – those made inadvertently by a user – but the contract had no such stipulation for invalid clicks, or those in which technical issues prevented a user from reaching the desired landing page upon clicking the link.

in the appellate brief, the plaintiffs wrote, “Because Facebook’s rules for distinguishing between valid and invalid clicks are based on uniform, automated computer algorithms, plaintiffs’ claims do not require resolution of Facebook’s culpability on a plaintiff-by-plaintiff basis. Whether plaintiffs win or lose, their claims will rise and fall together.”

What do you think? Are invalid clicks a worthy legal issue, and do you think this should be a class-action? Could this be a high-profile trial for the company? Let us know your thoughts in the comments section below.

DISCLOSURE: I own no positions in any stock mentioned.

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