Following the recent court finding that MP3.com Inc. wilfully
infringed copyright, a class action has been commenced in a US
District Court in California on behalf of those who invested in the
company behind internet music services.
US law firm Milberg Weiss is inviting other investors to join
the action against MP3.com.
The complaint charges MP3.com and certain of its officers and
directors with violations of the US Securities Exchange Act. The
complaint alleges that false and misleading statements about strong
sales and the growth of MP3.com's services artificially inflated
MP3.com's stock to over $36. On 7th September, the complaint
states,
it was revealed that, due to MP3.com's
wilful illegal acts, including violations of United States
copyright laws, its financial results were going to be much worse
than earlier forecast and that MP3.com would be the subject of a
potentially lethal damage award. Upon this revelation, trading in
MP3.com's stock was halted, last trading at $5-21/32, a decline of
over 85%
The case seeks to recover damages on behalf of the affected
investors.
