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Judge rejects Facebook settlement over ad feature

SAN FRANCISCO | Fri Aug 17, 2012 8:00pm EDT

SAN FRANCISCO Aug 17 (Reuters) - A U.S. judge rejected Facebook Inc's proposed legal settlement to resolve allegations that the social networking company violated its members' rights through the its 'Sponsored Stories' advertising feature.

U.S. District Judge Richard Seeborg in San Francisco on Friday said the company and attorneys for the plaintiffs could try to modify their agreement to address his concerns

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