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Case ID: 4524 | Technology | 11/10/2005
A class action lawsuit was filed in California Superior Court on behalf of all customers who have purchased Sony BMG audio CDs containing First 4 Internet's XCP2 software, directly alleging fraud, false advertising, trespass, unauthorized computer tampering, and violation of state statutes regarding the distribution of malware. The suit explicitly claims Sony BMG's copy protection scheme utilizes a rootkit as a means of monitoring operating system transactions without detection.
The court filing states "As a result of Sony's failure to disclose the true nature of the digital rights management system it uses on its CDs, thousands of computer users have unknowingly infected their computers, and the computers of others, with this surreptitious rootkit. This rootkit has been responsible for conflicts within computer systems, crashes of systems, and other damage." The suit seeks $75,000 in damages for each defendant who voluntarily attaches his or her name to the class action. As is standard procedure with class action lawsuits, the filing discusses in detail the situation of at least one defendant. In this case, the filing tells the story of a Los Angeles man who purchased an unnamed Sony BMG audio CD, and placed it in his CD-ROM drive. At that time, the suit claims he was the victim of a rootkit installation. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Technology Cases of Interest A class action has been filed in the Northern District Court of California against Utstarcom, Inc. (NASDAQ: UTSI), a California based communications services company, and certain of its officers and directors by stockholders who purchased the company's common stock between April 16, 2003 and September 20, 2004. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. The parties have reached a tentative settlement, apparently valued at $1.8 million, in two related class actions filed against online marketing service LookSmart, Ltd. on behalf of LookSmart customers who purchased a listing from the company between May 13, 1998, and April 9, 2002. The customers allege that they agreed to a contract that included a one-time payment to LookSmart for listing services only to find that the company, in violation of their contracts and California business laws, unilaterally changed their accounts so that they were required to make additional payments. Claim forms must be submitted online on or before November 14, 2003, to be considered valid. Several class actions have been filed against dental laser system manufacturer Biolase Technology, Inc. (Nasdaq:BLTI), and certain of its officers and directors by stockholders who purchased the company's common stock between October 29, 2003, and July 16, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. Several class actions have been filed against infrastructure service provider MasTec, Inc. (NYSE:MTZ) and certain of its officers and directors by stockholders who purchased the company's common stock between May 13, 2003, and April 12, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The parties have reached a tentative $12,026,000 settlement of a class action filed against software company Allaire Corporation (formerly Nasdaq: ALLR) and certain of its officers and directors by stockholders who purchased the company's common stock between December 7, 1999, and September 18, 2000. To recover under the settlement, a completed proof of claim postmarked no later than December 18, 2003, must be mailed to the claims administrator. Several class actions have been filed against enterprise incentive management software company Callidus Software, Inc., (Nasdaq:CALD) and certain of its officers and directors by stockholders who purchased the company's common stock between November 19, 2003, and June 23, 2004, including those who acquired their shares pursuant to the company’s November 2003 initial public offering. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. |
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