Facebook to pay out $10m to settle lawsuit with angry users

Facebook payed out $10m (£6m) to five users who were angry about their profile being used in adverts on the site. The legal case started way back in last year, after some users were annoyed about their faces being used as part of Facebook's 'Sponsored stories'.

At the time a Facebook spokesman said: "We are reviewing the decision and continue to believe that the case is without merit."

Facebook is struggling to retain its massive valuation post its recent flotation, settled the proposed class action lawsuit last month and has now agreed a compensation figure.

Facebook has agreed to pay out the $10m to settle the suit, but the type of settlement means the payment will to go charity than going to the individuals who brought the case. A judge still needs to approve this settlement.