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.
Full story to follow.
To have your say online click on the TalkBack button and go to the ZDNet News forum.