The Washington Post has a scathing article about a recent class action lawsuit against Yahoo! for click fraud in association with spyware and adware companies.
A class-action lawsuit filed Monday against Yahoo! Inc. and group of unnamed third-parties accuses the company of engaging in "syndication fraud" against advertisers who pay Yahoo to display their ads on search results and on the Web pages of partner Web sites. The suit claims that Yahoo displayed these advertisers' online ads via spyware and adware products and on so-called "typosquatter" Web sites that capitalize on misspellings of popular trademarks or company names.
Worse yet, the suit claims that Yahoo! pours on the click fraud traffic when they are worried that they are not going to make their quarterly numbers.
"Not only have Defendants turned a blind eye to abuse of their [pay-per-click] advertising system, but Defendants knowingly have manipulated that system for their own benefit, by increasing the volume of improper advertising displays during financial reporting periods when Defendants were at risk of failing to meet investor expectations."
The lawsuit PDF is online here.