A California judge has dismissed a $45 million lawsuit against online advertising network, ValueClick. The suit was brought forth by an internet service provider in a state with one of the greatest potential for damages.
The ISP, Hypertouch, claimed that ValueClick sent out 45,000 email messages containing false advertising. The judge threw out the case because he said the federal CAN-SPAM Act took precedent over a state law barring false commercial emails. The judge also said that Hypertouch failed to demonstrate fraudulent action on behalf of ValueClick and its co-defendant PrimaryAds.
This isn’t the first time ValueClick has run into spam allegations. Last year, they settled with the FTC for $2.9 million in alleged CAN-SPAM and FTC violations.
Expect Hypertouch to appeal.