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A San Francisco federal judge declined Thursday to approve a Facebook privacy settlement concerning the social networking site’s “Sponsored Stories” advertising program, saying he was concerned that the $10 million payout was not adequately explained, and might not be big enough.
The deal, which does little to bolster the privacy of Facebook’s approximately 150 million U.S.-based users, provides $10 million to the lawyers who sued the social-networking site and another $10 million to charity, in what is known as a cy pres award.
“Why shouldn’t the cy pres be $100 million?” U.S. District Judge Richard Seeborg asked attorneys on both sides.
He suggested he might order the parties to return to provide more information on how it reached that amount.