Call Scott Richter the $6 Million Man of MySpace. For the self-proclaimed "Spam King," lawsuit losses are becoming just another cost of doing business.
"Spam King" Scott Richter must pay $6 million in legal fees and damages to MySpace for spamming subscribers in August 2006. The judgment was handed down in arbitration.
Richter's company, Media Breakaway, won't appeal because the judgment is much lower than MySpace had originally sought. Earlier this month MySpace won a record $230 million in damages against spammers Walter Rines and Sanford Wallace, who fled before judgment was handed down.
MySpace had accused Richter sending unsolicited emails to thousands of MySpace customers purporting to be from MySpace friends promoting a website called consumerpromotionscenter.com.
The social networking site said that Media Breakaway used phishing tactics to obtain the email addresses.
MySpace sued Richter in January 2007 for damages under California's Can-Spam Act. The legislation awards $100 per email sent, which would have run into hundreds of millions of dollars.
Richter's previous company, OptInRealBig.com, declared bankruptcy in 2005 after Microsoft and the New York Attorney General sued Richter for spamming. They were asking for $50 million, but Richter settled with Microsoft for $7 million and the New York Attorney General for $50,000.