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Friday April 18, 2014

Appeals Court Tosses Unpaid $Bloggers $105M Suit Against #AOL

Image representing AOL as depicted in CrunchBase

Image via CrunchBase

Unpaid bloggers lost an appeal to reinstate a lawsuit contending AOL Inc owes them part of the $315 million purchase price of The Huffington Post. The 2nd U.S. Circuit Court of Appeals in NY rejected bloggers’ claims that they should receive $105 million of the sale price.

The class action suit was brought by 9,000 unpaid bloggers who claimed they were tricked into providing free content to the site—that HuffPo said the content would be provided as a public service and not sold to a larger organization. The 2nd Circuit struck down that claim, saying there was “no basis” for the argument. They said the bloggers were aware The Huffington Post was for profit and understood “they would receive compensation only in the form of exposure and promotion.”

 Reuters