Yahoo Reportedly Settles Class Action Suit Over Localworks

Chris CrumBusiness

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In January, a class action suit was filed against Yahoo over claims that its Localworks lead generation offering didn't work as advertised.

The suit didn't get a lot of press, but class action news site BigClassAction.com said this about it at the time:

Filed in federal court North Little Rock, AK, the lawsuit claims that in November plaintiffs Wilson & Haubert paid $90 for a three month enrollment in Localworks. Plaintiffs claim they were prompted to do so after Localworks revealed over 120 errors in listings by various online directories. “Relying on the representations made by defendant -- namely, that purchasing the services offered by Localworks would 'fix everything' -- plaintiff enrolled in Localworks,” the plaintiffs allege.

Plaintiffs claim that subsequent scans by Localworks showed that the directory errors remained unchanged. “Despite defendants' representations that the errors it identified had been corrected, and that plaintiff's business information was now included on the 40+ sites, enrollment in Localworks did not provide such benefits,” the lawsuit states.

MediaPost is now reporting that Yahoo has settled the lawsuit, but that the terms are confidential. It says:

Yahoo responded in court papers that any inaccuracies in the listings were due to an error the law firm made during the sign-up process. “A five-minute call to Yahoo’s customer service could have resolved the problem,” the company said.

Earlier this year, Yahoo argued that Wilson & Haubert should post a bond in order to proceed with the case. U.S. District Court Judge Edward Chen in the Northern District of California rejected that request. “Yahoo has not shown a possibility of success on the merits which warrant the posting of a bond,” Chen said at the time.

Either way, the whole thing is in the history books now.

Image via Yahoo

Chris Crum
Chris Crum has been a part of the WebProNews team and the iEntry Network of B2B Publications since 2003. Follow Chris on Twitter, on StumbleUpon, on Pinterest and/or on Google: +Chris Crum.