http://www.theinquirer.net/inquirer/news/081/1051081/google-paid-bullied-boy

"The father of a disabled boy who was filmed being insulted and tormented by four Italian youths has mysteriously withdrawn his lawsuit against Google.

Film of the incident which took place in Turin was was distributed around the World Wide Wibble using a Google service. Google pulled the video the moment it heard about it but it still got caught up in an Italian defamation suit.
...."

Back to Nov '06:
Italy opens probe into Google over bullying video:
http://www.timesofoman.com/innercat.asp?detail=353

"Prosecutors on Friday put two Google Italy representatives under investigation after a video of teenagers harassing an autistic classmate surfaced on its video site, a judicial source said.

The two are accused of failing to check on the content of the video posted on the Internet search engine’s Web site.

The video, which sparked outrage in the country, showed four teenagers beating and poking fun at a 17-year-old disabled boy in a classroom in the northern Italian city of Turin.
...."