Case Caption: In re Rene Cabrera, et al., v. Google LLC
Case Number: 11-cv-01263
Court: United States District Court for the Northern District of California - San Jose Division
Judge: Honorable Edward J. Davila
Plaintiff: Rene Cabrera and RM Cabrera Company, Inc. ("RMC")
Defendant: Google LLC
Overview: Kessler Topaz served as lead counsel in this historic consumer fraud litigation against Google. This long-running class action was filed in San Jose federal court in 2011 and settled just seven weeks before trial in 2025 for $100 million. The case alleged two overcharging schemes directed at users of Google’s AdWords online advertising platform. First, plaintiffs alleged that Google covertly charged advertisers for the display of online ads beyond the explicitly-designated geographical boundaries of class members’ advertising campaigns. Second, plaintiffs alleged that Google manipulated its “smart pricing” algorithm, which is designed to automatically reduce the costs of ads following an online auction for ad placement, to systematically overcharge advertisers for clicks on their ads.
Discovery in this case ensued for over a decade and included over forty depositions in the United States, Canada, and Europe. In August 2023, U.S. District Judge Edward J. Davila, in a 69-page opinion and following a full-day hearing, certified two classes of advertisers and denied Google’s motion for summary judgment. With the case just seven weeks from trial, the parties reached an agreement in principle to resolve the dispute on Christmas Eve 2024.
This is believed to be the largest settlement of a deceptive sales practice claim under California’s Unfair Competition Law for fraudulently displaying and charging for online ads beyond the geographical parameters set by advertisers.