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Yahoo's Latest Click Fraud Suit

Yahoo may have partnered with ClickForensics to combat click fraud, but that doesn't change the fact that some advertisers still feel like they got short-changed on fraudulent clicks in the past. Case in point, Bigreds.com's new $1 million click fraud lawsuit against the Web giant.

The collectibles e-tailer is suing Yahoo for bad traffic it allegedly paid for between 2002 and 2005. Bigreds.com spent some $900,000 with Yahoo (which was operating as Overture at the time) and said that a majority of the clicks came from affiliate Web sites that actually got revenue kickbacks from the Web giant for generating high volumes of clicks--not actual customers.

"Affiliates of Overture used software programs, employed people, and/or directed people other than actual customers to click on plaintiff's links from keyword search results," said Bigreds.com, in a complaint filed with the U.S. District Court in New York. "These clicks were not actual traffic, but were fraudulent clicks." The Web giant has yet to file a formal response to the allegations.

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