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Facebook Under Fire From All Sides, As Judge Denies Settlement

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Facebook Under Fire From All Sides, As Judge Denies Settlement

Things just are not getting any better for social networking giant, Facebook Inc (NASDAQ:FB), or its CEO, Mark Zuckerberg. CNN Money reports that a judge has just denied Facebook Inc (NASDAQ:FB)’s attempt to end a year old lawsuit regarding its “Sponsored Stories” ads.

Facebook Inc (NASDAQ:FB) offered a $20 million settlement to the plaintiffs in the case, and the judge all but called the settlement foolish. He said the amount suggested by Facebook’s attorneys seemed to be “plucked out of thin air.” U.S. District Judge Richard Seeborg is overseeing the case, and it’s obvious he is not pleased with Facebook Inc (NASDAQ:FB)’s weak attempt to resolve the issue.

The suit stemmed from Facebook’s “Sponsored Stories” ads, which included users’ names and photos as advertising devices. An earlier ruling by the court forced Facebook to give users the option to opt out of being included in advertisements, but did not set the terms for a settlement with the plaintiffs.

While the plaintiffs and Facebook had seemed to come to an agreement on the terms of settlement, the judge ruled against it, leaving Facebook open mouthed and scarred. Add this to the trouble which has already been experienced by the social networking giant, and you have a recipe for disaster. Falling stock prices, numerous lawsuits, and a bad reputation for customer service have all taken their toll on the company.

While these statements from a judge in a U.S. district court may seem to be a bit harsh, they are nothing compared to an earlier incident this week. Judge Lucy Koh, of California, has been presiding over the infamous Apple Inc. (NASDAQ:AAPL) vs Samsung Electronics Co., Ltd. (KRX:005930) patent suit, and her remarks regarding Apple Inc. (NASDAQ:AAPL)’s attempt to call witnesses were astounding, to say the least.

When Apple Inc. (NASDAQ:AAPL) attorney, Bill Lee presented a new list of witnesses to combat evidence which Samsung had submitted to the court, Judge Koh remarked on the amount of paper work involved, and asked the attorney if he was “smoking crack”. Thankfully, Lee kept his cool, as he informed her that he was not smoking crack, and had very carefully considered the amount of witnesses and the amount of time he had left to call them in. The case is now in jury deliberation to determine the outcome.

So, there you have it. At least two U.S. judges who are fed up with large companies suing and being sued in their courtrooms. While Apple may fare well in their case against Samsung, Facebook seems to only endure one loss after another.

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