Judge Rejects Facebook Settlement

Five Facebook users filed the lawsuit in April 2011, three months after Facebook introduced the ads that include users' names and faces. An earlier ruling in the case ordered Facebook to allow users to opt out of having their information used in the so-called Sponsored Stories.

Facebook and the suing parties struck a deal to resolve the case, but with Friday's ruling, the monetary settlement is back up in the air. The terms Judge Seeborg rejected would have included a $10 million "cy pres" payment to Internet privacy advocacy groups and up to $10 million in fees for the plaintiffs' attorneys.

Per Facebook's public filings, they earn $1 million per day in revenue for these sponsored stories.

http://money.cnn.com/2012/08/20/technology/facebook-sponsored-stories-settlement/index.html?source=cnn_bin