Spam Liability Not Covered Under Insurance Policy
MySpace sued Scott Richter and his entities asserting that Richter and his entities (and affiliates) spammed MySpace accounts. (Previous posts here and here.) The arbitrator who presided over the action found in favor of MySpace and awarded $6,079,751.04 in damages. Richter sought coverage under two different insurance policies. The Central District of California found that the action fell under exclusions to the policies and therefore, the insurance companies properly denied coverage. Greenwich Insurance Co. v. Media Breakaway, et al., 2009 U.S. Dist. Lexis 63454 (July 22, 2009).
Not surprising or really earthshattering. I'm always curious to see which of the big spam plaintiffs end up collecting, and to what extent. This ruling didn't shed any light on that topic. (That said, if someone sues you for sending unsolicited commercial email, it's worth a shot to try to obtain coverage.)
Not surprising or really earthshattering. I'm always curious to see which of the big spam plaintiffs end up collecting, and to what extent. This ruling didn't shed any light on that topic. (That said, if someone sues you for sending unsolicited commercial email, it's worth a shot to try to obtain coverage.)


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