LinkedIn agrees to $6.6 million settlement over ad metrics

LinkedIn has agreed to a $6.625 million settlement to resolve a proposed class action accusing the company of inflating ad metrics, leading to overcharges for advertisers. The preliminary settlement, filed in San Jose, California federal court, awaits approval by US Magistrate Judge Susan van Keulen. Although LinkedIn denies any wrongdoing, it has committed to hiring an outside auditor for two years to review its ad metrics.

The lawsuit originated from allegations by advertisers, including TopDevz of Sacramento and Noirefy of Chicago, who claimed LinkedIn counted video ad views even when the videos played off-screen as users scrolled past. This issue came to light after LinkedIn disclosed in November 2020 that software bugs had led to over 418,000 overcharges, mostly under $25. LinkedIn subsequently provided credits to nearly all affected advertisers.

The settlement covers US advertisers who purchased ads on LinkedIn from January 2015 to May 2023. LinkedIn stated that the settlement underscores its commitment to ad integrity and maintaining a trusted platform for users and customers. The advertisers’ lawyers may seek up to 25% of the settlement amount, approximately $1.656 million, for legal fees.

Judge van Keulen had previously dismissed the lawsuit in December 2021, but the advertisers appealed, and the appeal was put on hold for mediation. The case, known as In re LinkedIn Advertising Metrics Litigation, is being handled in the US District Court, Northern District of California.