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Intermix to Pay $7.5 Million to Settle Spitzer Suit


Intermix issued a statement Tuesday, saying it has reached an agreement in principle with the New York State Attorney General to resolve the pending lawsuit against it. New York Attorney General Eliot Spitzer had charged that the company was violating state law prohibiting false or deceptive advertising and practices - in this case, those related to adware. If the agreement is finalized, Intermix would pay a total of $7.5 million over three years to New York state.

It would also permanently discontinue distribution of its adware, toolbar and redirect programs. Intermix has said it "does not promote or condone spyware" and it "voluntarily ceased distribution of the applications at issue" in April. Intermix on Tuesday underscored that it has not admitted any wrongdoing or liability and expects the final agreement to state as much.

Intermix also issued its earnings report on Tuesday, citing Q4 and Fiscal year revenue growth of 68 percent and 49 percent, respectively. It also reported that it had established a $6.9 million reserve in connection with the New York lawsuit.

Final resolution of the lawsuit is subject to agreement by the parties on the specific provisions of a stipulated consent decree, which would be issued by the court memorializing the terms of the settlement. The company said it expects formal resolution in the next few weeks.


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