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Court Approves $9.5 Million Settlement

PRIVACY LAW—U.S.

February 28, 2013

A majority of judges on the U.S. Court of Appeals for the Ninth Circuit has approved a $9.5 million Facebook privacy settlement stemming from its Beacon program that affected the privacy of approximately 3.6 million users, Ars Technica reports. A portion of the settlement funds will go to the newly created Digital Trust Foundation (DTF) to support Internet privacy initiatives, the report states. The remaining $2.3 million will go to plaintiffs’ attorney fees. Six of the judges on the panel dissented from the decision, arguing Ninth Circuit judges have traditionally not approved settlements “where the selected charity lacks ‘a substantial record of service’ in remedying the types of wrongs alleged.” A Facebook spokesman said the DTF “will fund worthy projects that will help protect and improve Internet users’ privacy, safety and security.”
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