A $2.5 million settlement in a class action lawsuit against Quantcast and Clearspring over the alleged use of Flash cookies has received final approval from a U.S. District Court judge.
Multiple suits were filed in 2009 by plaintiffs who claimed that Quantcast and Clearspring, in conjunction with other defendants, stored information about consumers on Flash cookies that were harder to find and delete than HTTP cookies.
The suits, which were consolidated, alleged that the defendants violated the federal Computer Fraud and Abuse Act and Electronic Communications Privacy Act and California’s privacy law.
A mediation prompted the settlement, which will result in the payment of roughly $2 million to advocacy groups and educational institutions devoted to consumer privacy concerns.
The remainder of the settlement will be divided between the plaintiffs’ attorneys and incentive awards for the 18 named plaintiffs.
U.S. District Court Judge George H. Wu noted that only one person filed an objection to the settlement, which was voluntarily withdrawn prior to the court’s fairness hearing.
Why it matters: Privacy suits remain a hot area of class action litigation, although the terms of the settlement were similar to other recent suits alleging privacy violations, such as the litigation over Google’s Buzz social networking feature, where the main recipients of cash awards were privacy organizations and educational institutions.