Shareholders File Class Action Lawsuit Against Musicmaker.com

A class action lawsuit was filed by shareholders of musicmaker.com (http://www.musicmaker.com) today in a California court today.

The suit is on behalf of people who purchased shares of musicmaker.com during the period between July 7, 1999 and November 15, 1999.

Essentially, the complaint alleges that musicmaker.com violated the federal securities laws by making false and misleading statements in press releases, filings with the Securities and Exchange Commission, including the Prospectus and Registration Statement concerning the Company's Licensing Agreements. Among other things, the lawsuit says, musicmaker claimed that the Virgin/EMI Agreement uniquely positioned musicmaker in its market niche.

Musicmaker.com responded saying it believes that it has made "full and complete disclosures as required by law". The company says they plan to defend the action "vigorously".