Ben Edelman, an anti-spyware activist, sued Yahoo today. Edelman claims the search engine has partnered up with spyware firms to fraud advertisers:
The bombshell suit, filed in the U.S. District Court in New Jersey, also alleges that Yahoo used its Overture pay-per-click advertising network to make money from the practice of typo-squatting, in which slight variations of popular URLs are registered so as to serve ads to users who type in misspelled versions of domain names.
A Yahoo spokesperson declined comment on the suit. "We will vigorously defend our position," the company said in a statement sent to eWEEK.
The suit comes less than a month after Edelman blew the lid off a spyware-powered click-fraud scam using the Yahoo-owned Overture pay-per-click network to swindle advertisers. Yahoo has also been closely linked to Direct Revenue, an adware vendor that was recently sued by the New York attorney general's office.