Yahoo Finance: "WASHINGTON, Aug. 8 /PRNewswire/ -- A U.S. District Court judge ruled today that GEICO, in its case against Google, 'established a likelihood of confusion, and therefore a violation of the Lanham Act, solely with regard to those Sponsored Links that use GEICO's trademarks in their headings or text.' The court stayed the trial for 30 days to give the parties an opportunity to settle. If the parties do not settle, the trial will continue as to the amount of damages and on the issue of who is liable: Google, or the advertisers on Google."
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