EarthLink Wins $11 Million Judgment Against CAN-SPAM Act Violator

EarthLink's policy of pursuing violators of the federal CAN-SPAM Act through the courts has had significant consequences for Nevada Internet marketing company, KSTM. A federal judge in Atlanta has awarded the Internet service provider an $11 million judgment against KSTM, LLC for sending millions of illegal mortgage related email advertisements nationwide.

"This judgment should be fair warning that if you spam, we will sue," said Larry Slovensky, Assistant General Counsel for EarthLink.

According to the lawsuit, KSTM sent emails promoting the Website "lmlgdnhk.info". EarthLink claimed in the lawsuit that the company used false and misleading header information in its emails which violates the CAN-SPAM Act.

Additionally, EarthLink charged KSTM with breaking the federal Computer Fraud and Abuse Act, the Georgia Computer Systems Protection Act and state and federal racketeering laws.

Under penalty of contempt, KSTM is prohibited from engaging in such conduct as:

• falsifying the "from" field in the e-mail address (spoofing)
• hiding the identity of the email sender (cloaking)
• selling e-mail addresses
• accessing or obtaining EarthLink accounts

Since 1996, EarthLink has sued hundreds of spammers and won more than $200 million in judgments, including two criminal convictions against spammers who received prison sentences for their offenses.