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

NYC Adult Businesses Seek SCOTUS Appeal in Zoning Case

Attorneys representing a group of New York City adult businesses are asking the U.S. Supreme Court to hear an appeal of a lower court’s decision allowing enforcement of a 2001 zoning law aimed at forcing adult retail stores out of most parts of New York City.

Teasy Agency Launches Marketing Firm

Teasy Agency has officially launched Teasy Marketing firm.

Ofcom Investigates More Sites in Wake of AV Traffic Shifts

U.K. media regulator Ofcom has launched investigations into 20 more adult sites as part of its age assurance enforcement program under the Online Safety Act.

MintStars Launches Debit Card for Creators

MintStars has launched its MintStars Creator Card, powered by Payy.

xHamster Settles Texas AV Lawsuit, Pays $120,000

Hammy Media, parent company of xHamster, has settled a lawsuit brought by the state of Texas over alleged noncompliance with the state’s age verification law, agreeing to pay a $120,000 penalty.

RevealMe Joins Pineapple Support as Partner-Level Sponsor

RevealMe has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

OnlyFans Institutes Criminal Background Checks for US Creators

OnlyFans will screen creators in the United States for criminal convictions, CEO Keily Blair has announced in a post on LinkedIn.

Pineapple Support to Host 'Healthier Relationships' Support Group

Pineapple Support is hosting a free online support group on enhancing connection and personal growth.

Strike 3 Rejects Meta 'Personal Use' Defense in AI Suit

Vixen Media Group owner Strike 3 Holdings this week responded to Facebook parent company Meta’s motion to dismiss Strike 3’s suit accusing Meta of pirating VMG content to train its artificial intelligence models.

Pornhub, Stripchat: VLOP Designation Based on Flawed Data

In separate cases, attorneys for Pornhub and Stripchat this week told the EU’s General Court that the European Commission relied on unreliable data when it classified the sites as “very large online platforms” (VLOPs) under the EU’s Digital Services Act, news organization MLex reports.

Show More