Company Settles Behavioral Targeting Lawsuit
PRIVACY LAW—U.S.August 17, 2011
Defunct ad company NebuAd has agreed to a $2.4 million settlement in a class-action privacy lawsuit based on its behavioral targeting practices, MediaPost News reports. The seven Web users who filed the suit will receive $1,000 to $5,000 each. The case stemmed from NebuAd's partnership with six ISPs to gather data about Web users' online activities, "including search queries and activity at non-commercial sites," the report states. The plaintiffs claimed such practices violated federal and state privacy laws. NebuAd's insurers will reportedly fund the settlement. Lawsuits are pending against the six ISPs NebuAd partnered with before it folded in 2008.