February 21, 2001 4:16 PM PST
Another lawsuit for MP3.com
MP3.com, Inc. (Nasdaq: MPPP) can't go a day without a lawsuit. Just when the online music provider appeared to be in the clear, it got whacked with another law suit Thursday.
Shares closed up 2.19 to 6.19, or 54 percent Wednesday, after it said it had settled the last lawsuit against it.
MP3.com said Wednesday it will pay $53.4 million -- or 22 percent of its outstanding cash and marketable securities at the end of September -- to Universal and said MP3.com would convert much of its website to a pay service in the future.
MP3.com confirmed that a class action complaint for copyright infringement has been filed on behalf of Unity Entertainment Corp., and others, by Engstrom, Lipscomb & Lack in the United States District Court for the Central District of California, Los Angeles.
"On behalf of both consumers and artists, we are disappointed to receive this complaint particularly in light of the strides we have made in securing licensing agreements from now all five of the major record labels," said CEO Michael Robertson in a statement.