Yahoo has agreed to a process for refunding money to thousands of advertisers dating back to January 2004 and will pay $4.95 million in attorney fees to settle a click fraud class-action lawsuit, reports the Associated Press. Yahoo also committed to working with others in the industry to define what constitutes click fraud. The agreement, which does not place a cap on Yahoo's liability, received preliminary approval by U.S. District Judge Christina Snyder in Los Angeles.

All the online-advertising click fraud claims submitted to Yahoo will be subject to review by a retired federal judge who will oversee the refund process. "We want to keep our advertisers happy," Yahoo lawyer Reggie Davis is quoted as saying. "Whatever credits are owed will be 100 percent forthcoming."

John Slate, senior director of product development, said Yahoo has already given advertisers billions of free clicks, preferring to err on the side of its advertisers.