Judge rejects Facebook settlement of 'Sponsored Stories' lawsuit

A federal judge has rejected Facebook’s proposed legal settlement of allegations that the social networking giant had been unfair and deceptive in using members’ names and photos in its “Sponsored Stories” advertising without their consent.

U.S. District Judge Richard Seeborg in San Francisco said that he had concerns about the proposed settlement. He asked for more information about why the agreement does not award any money to Facebook users. “In this instance there are sufficient questions regarding the proposed settlement that it would not be appropriate simply to grant the motion and postpone resolution of those issues to final approval,” Judge Seeborg wrote. He said Facebook and attorneys for the plaintiffs could revise the settlement to address his concerns.