Judge Rejects Facebook Settlement Of Suit Over Its 'Sponsored Stories' Feature

Facebook CEO and cofounder Mark ZuckerbergFacebook founder Mark Zuckerberg

Photo: JD Lasica

A federal judge wants to know why Facebook members won’t get any money from a deal settling a lawsuit claiming the site’s “Sponsored Stories” feature violated users’ privacy.Judge Richard Seeborg rejected the proposed deal Friday, listing the lack of money for users among several other concerns, Reuters is reporting.

The proposed deal requires Facebook to pay just $10 million to charity and an additional $10 million in attorneys’ fees.

The suit claimed Facebook publicized users “likes” in its “Sponsored Stories” advertising section without compensating them or giving them a chance to opt out of the feature.

A Facebook spokesman said he still believed the settlement was fair, and that he looked forward to addressing the judge’s concerns.

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