Facebook Set to Defend Its $20 Million Settlement in “Sponsored Stories” Class Action

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Helen Jones
Executive Vice President 

Facebook, Inc. recently faced a large class action lawsuit stemming from a short-lived section on their website called “Sponsored Stories,” which promoted consumer brands using private user photos. Facebook came to a settlement agreement with the class in the amount of $20 million; however, many have opposed this deal because they feel it unfairly compensates certain members of the class. For example, teenage members who would receive more money from the deal due to state law protections. Facebook’s counsel will be arguing to uphold the settlement before the Ninth Circuit of the U.S. Court of Appeals, which has previously upheld a $9.5 million settlement deal Facebook reached in a previous class action. The Supreme Court refused to hear the case; however, the Court stated that if a “more suitable” case were to arise on this issue it might feel compelled to decide the issue.

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