Company Settles 'Spyware' Lawsuit for $7.5 Million
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Abstract
California-based Intermix Media will pay New York State $7.5 million over three years to settle a spyware lawsuit. In the suit, New York Attorney General Eliot Spitzer had charged the company with violating state false-advertising and deceptive-practices laws. Intermix acknowledged that it formerly distributed software that was surreptitiously installed on users' computers, though as part of the settlement the company admitted no wrongdoing. Intermix had previously suspended the distribution of the software at issue; with the settlement, the company will permanently discontinue the practice. Intermix has also created a position of chief privacy officer since the lawsuit was originally filed, and officials from the company said they have cooperated with federal regulators.