The lawsuit, brought by five Facebook members, alleged the social networking site violated California law by publicising users’ “likes” of certain advertisers on its “Sponsored Stories” feature without paying them or giving them a way to opt out, the documents said.
A “Sponsored Story” is an advertisement that appears on a member’s Facebook page and generally consists of another friend’s name, profile picture and an assertion that the person “likes” the advertiser.
The settlement was reached last month but made public this weekend. Facebook declined to comment on Saturday.
The proposed class-action lawsuit, filed in federal court in San Jose, California, could have included nearly one of every three Americans, with billions of dollars in damages, according to previous court documents.