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Case against Napster backers gets OK







Case against Napster backers gets OK

Case against Napster backers gets OK 07/14/2004 08:18 PM

ZDNet Jul 15 2004 0:13AM GMT




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Case against Napster backers gets OK

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-- VCs Everywhere Freak Out
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In a ruling that is bad news for investors everywhere, a judge has allowed the recording industry's lawsuit against the original Napster's investors continue. No matter what the legality of Napster was, this case represents a much bigger issue: are investors liable for what the company's they invest in do? Taken to its logical extreme, all the stockholders of companies like Enron and MCI should be responsible for the corporate misdeeds of those companies. Obviously, that's a bit ridiculous, but should major shareholders be responsible? If that's the case, life just got a lot harder for just about any VC, who has to be even more careful about what he or she invests in and some how has to personally guarantee the company won't break any laws.

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us.rd.yahoo.com/dailynews/rss/politics/*http://news.yahoo.com/news? tmpl=story&u=/washpost/20050410/pl_washpost/a40496_2005apr9
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slate.msn.com/id/2096654
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Case against Napster backers gets OK

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