Microsoft’s LinkedIn has agreed to pay $6.625 million to settle a class action lawsuit that alleged the platform overcharged advertisers by inflating video ad view metrics.
The lawsuit claimed that LinkedIn counted video ad views even when the videos were playing off-screen as users scrolled past them. This resulted in inflated metrics, leading advertisers to pay more than they should have.
LinkedIn will pay $6.625 million to settle the case, covering U.S. advertisers who purchased ads on the platform between January 2015 and May 2023.
LinkedIn had previously disclosed in November 2020 that software bugs might have caused overcharges for over 418,000 advertisers. The company provided credits to most affected advertisers at that time.
While LinkedIn has agreed to settle the lawsuit, it maintains that it did not engage in any wrongdoing.
As part of the settlement, LinkedIn has agreed to use reasonable efforts for two years to hire an outside auditor to review its ad metrics.
The settlement was filed in a federal court in San Jose, California, and is awaiting approval from U.S. Magistrate Judge Susan van Keulen.
The lawyers representing the advertisers may seek up to $1.656 million, or 25% of the settlement amount, for legal fees.
Overall, this settlement resolves a significant legal dispute for LinkedIn and highlights the importance of accurate ad metrics for advertisers.