Facebook's offer of a $20 million cash settlement in a class-action lawsuit over the company's use of user's names and photographs in advertisements was granted preliminary approval by a federal judge Monday afternoon.

The lawsuit was initially filed on behalf of Facebook users objecting to the use of their names and pictures in Sponsored Stories, ads which turn a user's "likes" into ads appearing in friends' news feeds. The lawsuit argues the ads are a violation of privacy, as they turn users into spokespeople and endorsers without their direct approval.

If the proposed settlement receives final approval, Facebook will divvy the $20 million among Facebook users claiming damages related to Sponsored Stories, with claimants receiving up to $10 each. Facebook also said they would let users opt out of Sponsored Stories entirely, as the San Jose Mercury News reports.

U.S. District Judge Richard Seeborg, who threw out Facebook's earlier offer this past summer, ruled this new settlement iteration "appears to be the product of serious" negotiations.

SEE ALSO: Facebook Proposes Fresh $20 Million Privacy Settlement

The deal isn't final just yet: A public interest lawyer is still arguing the deal isn't enough to protect Facebook users less than 18 years old, and has threatened to appeal Seeborg's decision should his concerns not be taken into consideration.

Do you think the proposed settlement is fair? Would you opt-out of Sponsored Stories, if given the choice? Share your thoughts in the comments.

Image courtesy of iStockphoto, Kativ