US law firm Milberg Weiss is inviting other investors to join the action against MP3.com.
The complaint charges MP3.com and certain of its officers and directors with violations of the US Securities Exchange Act. The complaint alleges that false and misleading statements about strong sales and the growth of MP3.com's services artificially inflated MP3.com's stock to over $36. On 7th September, the complaint states,
it was revealed that, due to MP3.com's wilful illegal acts, including violations of United States copyright laws, its financial results were going to be much worse than earlier forecast and that MP3.com would be the subject of a potentially lethal damage award. Upon this revelation, trading in MP3.com's stock was halted, last trading at $5-21/32, a decline of over 85%
The case seeks to recover damages on behalf of the affected investors.