Gator, Digital Publishers Settle Lawsuit

Pop-up ad publisher Gator Corp. settled a lawsuit Friday with several major Internet publishers, according to news reports.

Terms of the settlement with news outlets The New York Times, USA Today, The Wall Street Journal and The Washington Post, among others, were not disclosed.

The news organizations sued Gator in June over Gator's unauthorized third-party pop-up ads that would appear on users' computers when they visited the news companies' Web sites. The companies argued that Gator's ads obscured their own sites' advertising, and that consumers would not know the ads were being served by Gator and blame the site for serving them.

Terrence Ross, lead attorney for the publishers, did not say whether Gator would be able to continue serving ads on those sites or whether any money changed hands in the settlement, according to reports.

A U.S. District Court judge granted a preliminary injunction barring Gator from serving ads on the sites run by the companies and a trial was supposed to begin last month, but it was postponed because of settlement talks.

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