US judge dismisses Facebook's $20m offer to resolve 'Sponsored Stories' row

London, Aug 19 (ANI): A U.S. judge has rejected Facebook's proposed legal settlement to resolve allegations that the social networking giant violated the rights of its members through its 'Sponsored Stories' advertising feature.

Facebook had agreed to pay 10 million dollars as legal fees, and another 10 million dollars to charity, to resolve the issue.

"In this instance, there are sufficient questions regarding the proposed settlement, that it would not be appropriate simply to grant the motion and postpone resolution of those issues to final approval," the Daily Mail quoted the judge, as saying.

Earlier, five Facebook members filed a lawsuit seeking class-action status against the social networking site, saying that its 'Sponsored Stories' feature violated California law by publicizing users' 'likes' of certain advertisers without paying them or giving them a way to opt out.

According to the report, Sponsored Stories had become one of Facebook's most effective forms of advertising, which contains the name and photo of a Facebook friend who has clicked that he or she 'likes' a particular advertiser, the paper said.

"We continue to believe the settlement is fair, reasonable, and adequate. We appreciate the court's guidance and look forward to addressing the questions raised in the order," a Facebook spokesman said in a statement. (ANI)