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Facebook facing litigation over accusations of fraud

It is common for businesses to overlap. Some companies may utilize other businesses to help with advertising or other business growth, and often these measures can prove lucrative. However, when one company does not provide accurate information regarding how useful a business arrangement could be, another company could suffer. As a result, parties may feel that litigation is necessary to address the problems.

Florida readers may be interested in a lawsuit that was recently filed against Facebook, which alleges that the social media giant carried out fraudulent acts in order to obtain video advertisers. The company reportedly told advertisers that videos on the social media site gained more views than they actually did. The advertisers claim that the the views were inflated by 150 to 900 percent.

As a result of this misinformation, Facebook charged higher rates for advertisers to put their ads on videos. Advertisers apparently believed that their ads would be highly viewed, but when counting views, Facebook reportedly counted instances in which viewers watched for a minimum of three seconds. The lawsuit claims that Facebook knew that the viewership metrics were inaccurate since 2015 but did not inform advertisers of this information until Sept. 2016. The report also stated that Facebook has filed a motion to have the fraud claims dismissed.

Business relationships can hinge on the accuracy of information, and when one company's information is not as reliable as once believed, another company may understandably feel the need to take action. As this case shows, litigation may be necessary in order for businesses to seek justice and possible compensation after receiving false information. Florida business owners in this type of predicament may find it useful to consult with knowledgeable attorneys regarding their options for dealing with such issues.

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