Google to Settle Ad Suit for as Much as $90 Million

Google Inc. has agreed to settle, for as much as $90 million, a lawsuit alleging the online search engine leader overcharged thousands of advertisers who paid for bogus sales referrals generated through a ruse known as “click fraud.”

The proposed settlement, announced by the company Wednesday, would apply to all advertisers in Google’s network during the last four years.

Any website showing improper charges dating to 2002 would be eligible for an account credit that could be used toward future ads distributed by Google.

The lawsuit, filed by Lane’s Gifts & Collectibles on behalf of all Google advertisers, revolves around one of the most sensitive subjects facing Google and Yahoo Inc., which runs the Internet’s second-largest marketing network.

Click fraud is committed when scam artists repeatedly click on specific advertising links even though they have no intention of buying anything -- driving up advertising costs for companies that pay for each click by a prospective customer.

Yahoo, which also is named in the lawsuit, said Wednesday that it intended to fight the allegations.