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Facebook Lawsuit Against Ads Given Go-Ahead by U.S. Judge

Facebook Inc., the world’s most used social-networking service, can be sued by people who claim showing advertisements that their friends “like” violates a California law regarding commercial endorsements.

U.S. District Judge Lucy Koh in San Jose rejected Facebook’s bid to dismiss the lawsuit on Dec. 16, ruling the plaintiffs may pursue claims that the company’s sponsored ads violate state law and are fraudulent. Koh granted Facebook’s request to dismiss a claim that it unjustly enriched itself with the sponsored ads.