The LA Times & ABC News reports that Google is being sued by Nassau County Legislator, Jeffrey Toback (in Long Island, New York) for allegedly profiting on child pornography. The lawsuit "is a proactive step to keep children safe," Toback said and that the suit is not seeking monetary damages, it just wants Google to be more proactive on blocking out illegal pornography from both the paid and organic results.
It is important to note that only Google is being sued here, and not Yahoo, MSN or Ask.com. Also, Matt Cutts is famed at Google for writing the "safe search filter" at Google, I believe. Past coverage of pornography issues at the search engines include;
There is also many more stories on spam and porn issues out there in the blogosphere with Google.
Postscript: Eric Goldman from Marquette University Law School informed me that Yahoo went through the same thing and they won a motion to dismiss. He also says that the "lawsuit is almost certainly preempted by 47 USC 230."
Postscript: Eric has posted several updates including a link to the complaint (PDF) where he concludes that "this lawsuit is just a publicity stunt, and a pathetic one at that. Among other evidence of cluelessness, the complaint uses a wacky definition of "child pornography."
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