Search Engine Journal

A proposed settlement to a 2002 class action lawsuit against LookSmart will compensate customers who were required to accept a new commercial listings agreement to maintain inclusion in LookSmart’s directory.

The suit, filed in the Superior Court of California, San Francisco County, claimed breach of contract, fraudulent business practices and misleading advertising.

In April 2002, LookSmart moved thousands of companies that previously had paid a one-time submission fee into a new cost-per-click listing program. Companies that didn’t sign up for the new system risked de-listing from LookSmart’s database.

At the time of the suit, Robert Goldberg LookSmart’s senior vice president of sales and marketing told Search Engine Watch, “We believe suit is incredibly baseless. We’re going to defend it vigorously. We feel we are in a very strong legal position.”