Company settles 'spyware' lawsuit for $7.5 mln
Wed Jun 15, 2005 08:13 AM ET
SAN FRANCISCO (Reuters) - Intermix Media Inc. has agreed to pay the state of New York $7.5 million to settle a lawsuit charging it with bundling hidden "spyware" along with millions of programs it gave away for free, the company said on Tuesday.
The company also said it would permanently discontinue distribution of its adware, redirect and tool bar programs, all of which Intermix noted it has previously stopped distributing. Intermix said it did not admit any wrongdoing or liability.
Intermix shares rose $1.50, or 24.6 percent, to $7.60 in after-hours trading on Inet following the news.
The settlement deal follows New York Attorney General Eliot Spitzer's April lawsuit charging that the company's practice of bundling hidden spyware violated state laws prohibiting false advertising and deceptive business practices.
It also came as the company on Tuesday posted a fourth quarter net loss of $409,000 compared with a loss of $4.4 million a year ago. Revenue rose to $24.1 million from $14.4 million, boosted by gains at its Alena business unit and network segment. Full Read @ Reuters