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Judge Rejects Facebook Settlement Over Ad Program

A federal judge in San Francisco has rejected the proposed settlement between Facebook and class action plaintiffs who sued the social networking company over its "Sponsored Stories" advertising program.  The judge will, however, allow the parties to modify the agreement or submit further evidence explaining why the class members did not receive any direct payment; justifying the amount of the cy pres payment; clarifying the measures Facebook must implement to protect users; and supporting the plaintiff attorneys' fee calculations.