Jon F (aojon.com), owner of WickedFire.com, one of the biggest affiliate (and sometimes borderline spam) communities online, just confirmed MySpace launching lawsuits against over 20 different affiliate-based spam companies. Most of the companies are exploiting the bulletins system in MySpace to send spam to millions of users.

MySpace is choosing to prosecute these companies in California where the anti-spam laws are more harsh and penalties are steeper. for each around $20 to $75 million…. with CPA Empire at the top, being sued for $75 million.

Here is Jon’s entire post (link):

Well, while I sit here typing this, I’m pretty shocked by the news. Here at ASW in Vegas, spirits were high for the last 2 days, but have since been shattered by Myspace’s announcement to sue at least 20-25 ad networks that many of you know all too well. Some really big ones, others are small to medium sized. Basically, they aren’t just going after the big guys in this one, they are obviously doing this to make a point the first time around.

This news is coming from 3 different trusted sources, who gave me the thumbs up to leak the news (even before some of the companies on the list will find out they are on it) but would prefer to remain anonymous. Who can blame them either, eh?

I’ve got a bunch of confirmed sources on the story as well.

Here’s what I know for sure:

Myspace’s lawsuit against the networks are to ban them, and their owners from visiting the myspace.com site.

Myspace is seeking punitive damages from $20 million to $75 million PER network.

Myspace is using the strict California state anti-spam laws as basis for the punitive damages cash amount. These laws are meant for email, not bulletins, but for some reason, they are using this as the reason for the crazy damages suit.

I have a list of 6 confirmed networks and 14-17 unconfirmed networks, but will hold off on releasing the names of them until I am absolutely sure they are involved. I was debating on releasing the names, but seeing as this is one hell of a blow that will most likely kill off a network, I think it’s safer to just wait a bit and see who is really on the list and who isn’t.

The biggest network being hit is CPA Empire for a staggering $75 million.

I’ve been saying this for a while now, Myspace was actively monitoring the spam-friendly haven forum known as Screennameforum.com. The list of networks being sued reads like a shopping list, because they all, at some point or another drafted known Myspace spammers and phishers into their programs to promote their offers, even AFTER cease and desist letters were issued to them by Myspace.

It really sucks that this is happening, but at the same time, I don’t blame Myspace for their actions, nor do I blame them for doing this and using the networks as an example of their anti-spam rules. This should act as a warning to the entire industry, that spam, no matter email or social networking, is probably not the best route to pursue.

And his later follow-ups:

If this does in fact happen, and the confirmed networks are found guilty, we’ll be seeing a lot of people filing for bankruptcy. Shakeups like this are good for the industry in the long run. Kills off the bad ones and only keeps the good. I do feel bad for the networks on the list I have, because I’m pretty good friends with all of their owners and a lot of their AM’s, and would hate to see them close shop and disappear.

It’s 3am here in Vegas now, just got off the phone with 2 more network CEO’s that have confirmed that they are indeed being sued, and both are in the $20M-$30M area. Insane.

When he’s talking about ASW or Vegas… he’s referring to the Affiliate Summit 2007.

The news of MySpace launching lawsuits towards all these ad networks comes in the heels of an official announcement that MySpace is seeking damages from the infamous spammer Scott Richter (source).

However this time, by targeting all sized ad networks, from small to massive, MySpace is clearly trying to send a message through the industry that they’re tired of the abuse of their network… quite possibly the most heavily spammed website on the entire internet.

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