Shareholders sue MP3.com

Did MP3.com mislead shareholders about future growth?
Written by Lisa M. Bowman, Contributor

Famed plaintiff's attorney Bill Lerach of the firm Milberg Weiss has sued MP3.com, alleging the company mislead shareholders about future growth and knew it was basing its business on a model that violated copyrights.

The suit seeks class action status on behalf of anyone who purchased shares of the stock between 13 January and 7 September. On 6 September, a federal judge in New York ruled that the company owed Seagram's Universal Music unit $25,000 for each compact disc that was unlawfully posted on its My.MP3.com database, an order that could cost the company as much as $118m.

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