Microsoft on Tuesday said it had settled its lawsuit against former "spam king" Scott Richter, who has agreed to pay $7 million to Microsoft, reports Reuters. Richter and his company were scheduled to file a motion on Tuesday to withdraw bankruptcy proceedings as a condition of the settlement, according to a joint statement by the parties.
The joint statement said Richter had changed his spamming practices in part because Microsoft and New York Attorney General Eliot Spitzer had sued him in 2003 - although Spitzer subsequently settled for a measly $50,000.
According to Internet News, Microsoft said it would invest $5 million into its computer-related crimes division to pay for investigative and technical support; $1 million to the state of New York to fund computer skills training at community centers; and the remaining would in large part be used to pay legal fees.
Microsoft had charged that Richter violated state and federal spam laws. Richter and his company, OptInRealBig.com, denied all allegations.
Richter, once known as the world's third-largest spammer, has spent the last two years marketing himself as a legitimate businessman. OptInBig collects opt-in email addresses and offers them to email marketers.
