and its Chief Executive, Scott Richter, have been told to pay the social networking giant, MySpace, $4.8 million in damages and $1.2 million in legal fees. The company's employees were also ordered to stay off MySpace for running phishing attacks and sending unsolicited messages to MySpace users.
Richter, who once paid $7 million to Microsoft to settle a lawsuit that accused him of sending illegal spam, got off lightly. The court-appointed arbitrator said much of the spamming activity was the fault of Media Breakaway's partners. They send traffic to sites owned by advertisers who pay Media Breakaway for the leads or sales, according to Court documents.
Another reason for the 'lighter fine' is that Media Breakaway has made efforts to comply with the law, such as making affiliates sign anti-phishing agreements. However, some of the affiliates either ignored or were not aware of the agreements, the arbitrator wrote.