A judge has approved Facebook's proposed settlement in a class-action lawsuit over its Beacon tracking service.

"Under the settlement, Facebook will pay $9.5 million to set up a privacy foundation to fund projects promoting the cause of online privacy in return for the lawsuit against it to be dropped," writes Computerworld's Jaikumar Vijayan.

"The dispute stems from a lawsuit filed in August 2008 against Facebook by several users of the social networking site," Vijayan writes. "The suit alleged that Facebook and Beacon affiliates such as Blockbuster and Overstock.com had violated several federal privacy laws, including the Electronic Communications Privacy Act and the Video Privacy Protection Act, when they shared data about Facebook users with each other."

Click here to read the Computerworld article.