Spammer Settles with Microsoft for $7 Mln

Microsoft announced today it has settled a lawsuit against former "spam king" Scott Richter for $7 million.

Microsoft Corporation announced today it has reached a settlement with former self-proclaimed "spam king" Scott Richter and his Colorado company OptInRealBig, LLC, for some $7 million. The settlement is contingent on bankruptcy proceedings against the company being dismissed by a Denver court, but Microsoft says, after recovering its expenses from the case, it plans to re-invest all money from the settlement, including putting $5 million towards enhancing technical investigative support for law enforcement and $1 million to the state of New York, which also sued Richter in December, 2003.

In a joint statement issued by Microsoft and Richter, Richter denies all allegations, yet claims he has changed his company’s email practices due to the lawsuits filed against him by Microsoft and the New York Attorney General. "I am committed to sending email only to those who have requested it and to complying fully with all federal and state anti-spam laws,” said Richter.

Microsoft’s suit against OptInRealBig alleged the company violated Washington State’s and federal antispam laws by sending (and enabling others to send) mail which used forged and misleading subject lines, forged domain names and IP addresses, forged sender names, obscured transmission paths, and routed through compromised mail servers in 35 countries. Richter and his company will be required to submit to three years of oversight to ensure compliance with the settlement.