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 © 2026 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

AV Bulletin: Loopholes and Lawsuits

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

Utah 'Porn Tax' Bill Will Head to Governor's Desk

A bill that would tax adult websites and make them liable if minors circumvent geolocation has passed the Utah state legislature and will soon head to the office of Gov. Spencer Cox for signature or veto.

Flirt4Free Co-Founder Gregory Clayman Passes Away

Gregory Clayman, a pioneering figure in the live cam sector and cofounder of the long-running webcam platform Flirt4Free, has passed away.

Pornhub to Restrict Access in Australia as AV Rules Take Effect

Pornhub parent company Aylo will restrict access to its free video-sharing platforms in Australia in response to new age verification regulations, the company confirmed Thursday.

ASACP Announces F2F as 1st Gold Sponsor

The Association of Sites Advocating Child Protection (ASACP) has announced Friends2Follow (F2F) has upgraded its sponsorship and become the organization’s first Gold Sponsor.

House Committee Approves Online Safety Bill With Federal AV Requirement

The U.S. House of Representatives Committee on Energy and Commerce on Thursday passed the Kids Internet and Digital Safety (KIDS) Act, which includes provisions to make age verification by adult websites federal law.

Segpay Adds 'Pay by Bank (UK)' Payment Solution

Segpay has added the Pay by Bank (UK) option to its direct payments solutions.

Federal Judge Orders Refunds for Companies That Paid Trump Tariffs

A judge for the U.S. Court of International Trade on Wednesday ordered U.S. Customs and Border Protection to refund duties paid under the Trump administration’s sweeping program of tariffs.

Creator Verification Platform 'VerifiedCollab' Launches

Performer Eli Thomas has launched VerifiedCollab, a verification platform for creators and producers.

House Committee to Weigh Online Safety Bill With Federal AV Requirement

The U.S. House of Representatives Committee on Energy and Commerce will meet Thursday to consider and potentially amend the Kids Internet and Digital Safety (KIDS) Act, which includes provisions to make age verification by adult websites federal law.

Show More