Verizon, Spam Co. Reach Settlement

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By MATTHEW BARAKAT : AP Business Writer Oct 29, 2002 : 5:21 pm ET

McLEAN, Va. (AP) -- One of the world's most prolific purveyors of bulk e-mail, or spam, has been barred from sending messages to Verizon customers under a legal settlement.

Under the agreement, parts of which are secret, Verizon's 1.64 million Internet customers in 40 states will no longer receive spam from Alan Ralsky, whose Michigan-based company, Additional Benefits LLC, is considered one of the largest sources of bulk e-mail.

"It's not like these guys file SEC reports, but as best as folks can tell he is one of the bigger spammers out there," said John Mozena, a spokesman for the Coalition Against Unsolicited Commercial E-mail.

Verizon filed its lawsuit against Ralsky in March 2001 in Virginia federal court after several 2000 incidents in which Verizon Online customers were inundated by millions of e-mail solicitations from companies that work with Ralsky, said Verizon spokeswoman Bobbi Henson.

The initial lawsuit against Ralsky had sought to shut him down entirely but Henson called the settlement a victory.

"People should see this and think twice about sending spam on our lines," Henson said. She said Ralsky must also pay an undisclosed fine.

Ralsky's company would send e-mail solicitations for online casinos, diet pills, and companies that promise to fix bad credit, among others, according to the complaint filed by Verizon.

The complaint said Ralsky broke federal and Virginia law by among, other things, clogging Verizon's network with a flood of illegitimate e-mails.

Mozena said most Internet providers work hard to keep spam from their customers, using filters and other technology, although the recent telecom meltdown has left some cash-strapped providers dependent on money they can earn from trafficking in spam.

Occasionally, he said, a provider will file a lawsuit against a person or business it considers a particularly egregious abuser of its e-mail network.

Major providers like America Online and EarthLink have won settlements in recent years on grounds similar to those cited in the Verizon lawsuit.

Ralsky has said he has lists of 150 million e-mail addresses as a part of his business, so the Verizon case would likely make only a small dent in it.

Ralsky's lawyer did not immediately return calls from The Associated Press seeking comment. Ralsky told The Detroit News he denies any wrongdoing.

-- Anonymous, October 30, 2002


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