Yelp Deal to End Investors’ Ad Churn Suit Gets Initial Court Nod

Yelp Inc.'s $22.25 million offer to settle a class suit on behalf of investors who say the company misled them about the business effect of advertising churn deserves preliminary approval, a federal court in California said.

Judge Edward M. Chen allowed the deal to proceed only after asking for extra briefing on how the parties estimated potential maximum jury verdicts, according to his ruling Monday for the US District Court for the Northern District of California.

In 2019, Chen certified a class consisting of investors who acquired Yelp common stock from Feb. 10, 2017, through May 9, 2017.

The amount ...