MENU

Yelp Wins Significant Lawsuit Over Authenticity Of Its Reviews

27 November 2015, 1:15 pm EST By Mark Lelinwalla Tech Times
Close
Selena Gomez Reveals Her Best Friend

The reviews are in—and it's a landmark win for Yelp.

The company won a lawsuit from shareholders, alleging they were fraudulently misled about the validity of the website's reviews — even pondering if Yelp compromised the reviews in favor of more advertising dollars — when a judge dismissed the case earlier this week.

Reuters is reporting that U.S. District Judge Jon Tigar, in San Francisco, dismissed the lawsuit, reasoning that investors should understand that Yelp's technology to screen user-generated reviews is vulnerable to fake reviews and thus all of the website's reviews cannot be real. At the same time, Tigar didn't find any intent from Yelp to defraud with its reviews, either.

(Photo : Spencer Platt | Getty Images News)

According to Reuters, shareholders said Yelp was inflating its share price by misrepresenting the validity of its reviews in a way to coerce businesses into purchasing ads or tendering fees to remove fake or negative reviews, but apparently Tigar didn't find that to be the case.

This comes after Tigar also tossed a similar class-action lawsuit against Yelp this past April.

Tigar said a small amount of complaints accused Yelp of compromising reviews in exchange for money, stating "especially when compared to the tens of millions of reviews hosted by Yelp."

The "community managers, scouts, and ambassadors" being used alongside the company's automated screening technology "does not indicate that Yelp's directors and officers knew that any significant number of reviews were not authentic or firsthand, beyond what defendants represented to the public," Tigar said.

Is this a fair verdict?

© 2017 Tech Times, All rights reserved. Do not reproduce without permission.

From Our Sponsor

Entropia Universe Allows Players To Earn Real Cash In The Virtual World

Everything in Entropia Universe has real cash value, and the real estate, land and deeds that players invest in are actual investments. The game uses a micropayment system that allows players to buy Project Entropia Dollars (PED), which is used as in-game currency. With a click of a mouse, PED can also be withdrawn from the game and transferred to your bank account using an e-money/e-wallet service like Neteller e-wallet.
Real Time Analytics