Facebook settles 'Sponsored Stories' lawsuit

Facebook has agreed to settle a lawsuit that alleges the social network's so-called Sponsored Stories advertisements benefited from the "Likes" of users without giving them compensation or a chance to opt out. The terms of the settlement were not disclosed. The settlement was disclosed in a court document filed in federal court in San Jose. The lawsuit, filed last year by five Facebook users, could have resulted in billions of dollars in losses for Facebook.