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Universal Music Told, Once Again, It Can't Sue Veoh's Investors For Veoh's Actions

from the good-news dept

Back in February, Universal Music got slapped down for its highly questionable attempt to sue the investors in Veoh for the actions performed by the company itself. We've never quite understood why the major record labels have tried, repeatedly, to sue the investors of sites and services they don't like. It's hard to see how that's justified, because if those investors are found liable, it would create a huge liability for any investor. Investors don't have day-to-day control over a company, and trying to make them liable for the actions of the company makes no sense. However, not only was Universal shot down in this attempt, but it tried to refile the lawsuit against the investors... and was shot down yet again. The judge noted that Universal Music presented no evidence as to why the investors should somehow be responsible for the actions of the company and tossed out the lawsuits against them again. Hopefully this wakes up EMI, who recently sued the investors in a small startup as well.


Reader Comments (rss)

(Flattened / Threaded)

  1.  
    identicon
    Elaine, May 19th, 2009 @ 7:29pm

    Simple answer

    They are suing investors for the same reason Willy Sutton was reported to rob banks:

    That's where the money is.

     

    reply to this | link to this | view in thread ]

  2.  
    identicon
    KnowItAll, May 19th, 2009 @ 8:08pm

    Wrong, there are suing just to annoy investors so that they not investing in similar business models again and (in the long run) pull the money out of the current business.

    I did that once as I had problems with a Company who was based on investment capital and it worked. They where much nicer to me after that.

     

    reply to this | link to this | view in thread ]

  3.  
    identicon
    Jason, May 19th, 2009 @ 9:30pm

    Re:

    I hope it comes back to bite you, and maybe then you choke on it, too.

     

    reply to this | link to this | view in thread ]

  4.  
    identicon
    Bettawrekonize, May 19th, 2009 @ 9:53pm

    Re:

    The government needs to stop this nonsense.

     

    reply to this | link to this | view in thread ]

  5.  
    identicon
    Anonymous Coward, May 19th, 2009 @ 9:54pm

    Re:

    "there are suing just to annoy investors so that they not investing in similar business models again and (in the long run) pull the money out of the current business."

    That was my suspicion. It's just a distraction/deterrent even if they know they'll lose. This is why it should be stopped.

     

    reply to this | link to this | view in thread ]

  6.  
    identicon
    Lawrence D'Oliveiro, May 19th, 2009 @ 10:06pm

    Re: Suing the Investors

    KnowItAll wrote:

    [They] are suing just to annoy investors so that they not investing in similar business models again ...

    Fine. So what message does it send when they lose these lawsuits? That investment in businesses like these is in fact fine.

     

    reply to this | link to this | view in thread ]

  7.  
    identicon
    Anonymous Coward, May 19th, 2009 @ 10:20pm

    Re: Re: Suing the Investors

    "Fine. So what message does it send when they lose these lawsuits? That investment in businesses like these is in fact fine."

    I don't really think they intend the outcome to make a point or send a message, just the fact that investors can be sued. Most people don't want to deal with lawsuits against them even if they know they'll win.

     

    reply to this | link to this | view in thread ]

  8.  
    identicon
    Lawrence D'Oliveiro, May 19th, 2009 @ 11:50pm

    Re: Suing the Investors

    I don't really think they intend the outcome to make a point or send a message, just the fact that investors can be sued.

    No they can’t. That’s the message that keeps coming through here, in case you hadn’t noticed.

     

    reply to this | link to this | view in thread ]

  9.  
    identicon
    Michael Kohne, May 20th, 2009 @ 3:17am

    Universal's investors...

    You'd think Universal's investors would be beating the living snot out of the board to make this stop. If by some miracle this suit went through, they'd be liable for any illegal things that Universal did, and who the heck knows what nefarious activities have happened there over the years?

     

    reply to this | link to this | view in thread ]

  10.  
    identicon
    Anonymous Coward, May 20th, 2009 @ 8:28am

    Hmmm, the SEC goes after investors with Bernie Madoff to recover profits from an illegal swindle, maybe this one isn't so far off if they determine that the company was in fact breaking the law.

    Yeah, that is quite a stretch. I would have said leap, but no one can jump that far.

     

    reply to this | link to this | view in thread ]

  11.  
    identicon
    Michael Kohne, May 20th, 2009 @ 1:15pm

    Comparison to Madoff inappropriate

    Madoff was running a fund - not a business. He was (supposed to be) investing in stocks, bonds, whatever. It's an entirely different thing.

     

    reply to this | link to this | view in thread ]


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