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Myspace wins $230 million spam case

The popular online hangout MySpace has won a $230 million judgment over junk messages sent to its members in what is believed to be the largest anti-spam award ever.
A federal judge in Los Angeles ruled against a notorious "Spam King," Sanford Wallace, and his partner, Walter Rines, after the two failed to show up at a court hearing, MySpace told The Associated Press on Tuesday.
Wallace earned the monikers "Spam King" and "Spamford" as head of a company that sent as many as 30 million junk e-mails a day in the 1990s. He left that company, Cyber Promotions, following lawsuits from leading Internet service providers such as Time Warner Inc.'s AOL, only to re-emerge in a spyware case that led to a $4 million federal judgment against him in 2006.
"MySpace has zero tolerance for those who attempt to act illegally on our site," said MySpace's chief security officer, Hemanshu Nigam. "We remain committed to punishing those who violate the law and try to harm our members."
Rines and Wallace created their own MySpace accounts or took over existing ones by stealing passwords through "phishing" scams, Nigam said.
They then e-mailed other MySpace members, he said, "asking them to check out a cool video or another cool site. When you (got) there, they were making money trying to sell you something or making money based on hits or trying to sell ring tones."
MySpace said the pair sent more than 730,000 messages to MySpace members, many made to look like they were coming from trusted friends, giving them an air of legitimacy. Under the 2003 federal anti-spam law known as CAN-SPAM, each violation entitles MySpace to $100 in damages, tripled when conducted "willfully and knowingly."

 

Scott Drake talks to John Levine of the anti spam advocacy group Coalition Against Unsolicited Commercial Email. 

 

Posted on Thursday, May 15, 2008 at 10:04AM by Registered CommenterThe LBN Team | CommentsPost a Comment

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