MySpace Wins $234 Million CAN-SPAM Case

LOS ANGELES — Social networking site MySpace has won a $234 million legal judgment under the CAN-SPAM law over junk messages sent to MySpace members after defendants Sanford Wallace and Walter Rines failed to show up in court.

The judgment is thought to be the largest ever made against senders of unsolicited commercial email.

"Anybody who's been thinking about engaging in spam are going to say 'Wow, I better not go there,'" Hemanshu Nigam, MySpace chief security officer, told the Associated Press. "Spammers don't want to be prosecuted. They are there to make money. It's our job to send a message to stop them."

The two junk mailers created MySpace accounts and took over existing ones by stealing passwords. Using these accounts, they emailed MySpace members fraudulently, making the mail look like it came from trusted friends. Typically, the email asked recipients to view a video or visit a website.

"When you go there, they were making money trying to sell you something, or making money based on hits or trying to sell ringtones," Nigam said.

MySpace said the duo sent 735,925 messages to its members.

In court papers, MySpace said that sending the junk mail cost the company money and generated complaints from hundreds of users. MySpace also claimed that some of the external websites contained pornographic material, potentially harming teenagers who use MySpace.

Under the 2003 CAN-SPAM law, each violation entitles MySpace to $100 in damages, which is tripled when spam is sent "willfully and knowingly."

MySpace sought $157.4 million from Wallace and Rines under CAN-SPAM, plus a further $63.4 million separately from Rines under the same law. MySpace sought another $3 million from the pair under a different section of CAN-SPAM, $1.5 million under California's anti-phishing laws and reimbursement for $4.7 million spent on legal fees.

U.S. District Judge Audrey B. Collins granted every one of MySpace's claims for damages. The judge also issued injunctions against Wallace and Rines, barring similar activities in the future.

John Levine of the antispam advocacy group Coalition Against Unsolicited Commercial Email told reporters he believes MySpace will have a tough job collecting the money.

"The giant judgments are all defaults, which means they don't necessarily even know how to find the spammer."

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Ofcom: Age Assurance Going Live Across 'Thousands' of Porn Sites

U.K. communications regulator Ofcom said in a statement Thursday that providers of online pornography are implementing age assurance across “thousands of sites” accessible in the U.K., in response to Ofcom’s Online Safety Act (OSA) enforcement program.

ASGMax Debuts 'Roleplay' AI Chat Feature

Alpha Studio Group (ASG) has introduced the ASGmax Roleplay AI chat feature.

XBIZ Miami's Host Hotel Sold Out, General Registration Now Open

Guest rooms at XBIZ Miami’s exclusive conference venue, Nautilus Sonesta Miami Beach hotel in South Beach, are now completely sold out.

Adult Industry Educational, Networking Platform 'Imperfectly You' Launches

Imperfectly You, an educational and networking platform for adult industry workers, has officially launched.

Segpay to Launch News Network for High-Risk Merchants

Segpay has announced that it will launch the Segpay News Network (SNN) on April 15.

Age Verification Watch: Patching the Holes

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Pineapple Support to Host Autism Spectrum Support Group

Pineapple Support is hosting a free online support group for performers and creators who are, or suspect they may be, on the autism spectrum.

ImLive Launches Revamped Member Loyalty Program

Cam platform ImLive has revamped its member loyalty program.

GoFundMe Set Up for Danny Ferretti's Medical Expenses

A GoFundMe campaign has been set up for Fangear founder Danny Ferretti, who requires extensive lung surgery.

Byborg Acquires Cuties AI

Byborg Enterprises has acquired adult artificial intelligence startup Cuties AI.

Show More