Yahoo’s 1 Million Dollar Lawsuit

    April 17, 2008

Reuters may well report that Yahoo’s paid search performance is growing faster than Google’s, but a new $1 million law suit might negate any such gains.

According to ComputerWorld, Bigreds–an online seller of collectibles–will ask a judge to force Yahoo to pay back the $936,000 in paid traffic, it claims was fraudulent.

Bigreds, which sells collectibles online, said that between 2002 and 2006, it used Overture Services Inc., a pay-per-click advertising service that was acquired by Yahoo in 2003. Bigreds said it was charged more than $936,000 between 2002 and 2006 for the number of clicks that Bigreds ads received on sites affiliated with Yahoo and Overture.

To be fair, Yahoo has offered to refund some of the invalid clicks–to the tune of a whopping $17,000.

Marketing Pilgrim predicts a long drawn-out dispute, with an eventual undisclosed settlement, closer to the $17k than the $1M.

Still, now you know where to go to buy your collectibles online–which is probably what Bigreds seeks most out of this law suit.