Yelp Dodges Extortion Class Action

Law360, New York (October 27, 2011, 10:00 PM EDT) -- A California federal judge on Wednesday tossed a proposed class action accusing Yelp Inc. of extorting businesses by fabricating negative reviews for companies that did not advertise on the local reviews website.

U.S. District Judge Edward M. Chen found that the plaintiffs had failed to state enough facts to prove their “entirely speculative” claims that Yelp enlisted its employees to write negative reviews on their businesses, and dismissed the case with prejudice.

“That Yelp employees have written reviews, even for pay, does not raise more than...
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