MySpace Shareholders Score Decisive Victory; Federal Judge Orders Jim Brown V. Brett C. Brewer Class Action Lawsuit Arising from Unfair Sale of MySpace to News Corp to Proceed to Trial

"Shareholders of eUniverse laud the federal judge in Jim Brown v. Brett C. Brewer's decision to order the stockholder class action lawsuit arising from MySpace's unfair sale in September 2005 to News Corp, to proceed to trial."

Details of the decision can be reviewed at: www.NewsCred.com/MySpace-Legal

U.S. District Court Federal Judge George H. King denied Defendant's motion to dismiss the entire complaint that alleges that Plaintiffs, who owned common shares in publicly traded eUniverse, which created and in 2005 was the majority owner of MySpace.com, were defrauded of billions of dollars in potential profits from the unlawful sale of both eUniverse and MySpace to News Corporation, in violation of federal and state law, and defendants' violations of 14(a) of the Securities Exchange Act of 1934 (the "1934 Act") and Securities and Exchange Commission ("SEC") Rule 14a-9.

Lawyers for Plaintiffs are expected to begin discovery shortly against Defendants that include the Directors and senior officers of publicly traded Intermix (formerly eUniverse) and venture capital investor Vantage Point Partners.

Named Defendants are: Brett C. Brewer, Daniel L. Mosher, Lawrence Moreau, Christopher S. Lipp, James Quandt, William Woodward, Richard Rosenblatt, David Carlick, Andrew Sheehan, and Vantage Point Partners.

Shareholder Victims include thousands of direct shareholders and hundreds of thousands of people with capital invested with funds, including William Blair & Co., Gardner Lewis Asset Management, Gruber and McBaine Capital Management, Trafelet & Company, LLC, Capital Research & Management.

Brown v. Brewer will proceed to trial on Count Two based on Plaintiff's successful allegations that the 2005 Proxy contained a false or misleading statement or omission of material fact, made with at least negligence that was an essential link in accomplishing the News Corp transaction.

Justice King indicated in the opinion: "In light of our findings and conclusions on Plaintiff's allegations concerning the value of MySpace, the internal management projections, and the derivative suits, we need not consider the remaining allegations of the CSAC concerning the purported interest from Viacom and the MySpace option. We intimate no opinion as to the merits of these latter allegations at this time."

Count Four related to Defendants violations of breach of fiduciary duty and for aiding and abetting a breach of fiduciary duty in connection with the sale of Intermix to News Corp. has been ordered to proceed to trial.

Judge King noted - "in light of our conclusion that Count Two is adequately pled, we cannot find untainted stockholder approval of the merger here."

Defendant's motion to dismiss Count Five was also denied and will proceed to trial, with Judge King indicating that knowing participation can be inferred to Carlick and Sheehan, managing directors of VantagePoint:

MySpace Founder and largest MySpace/Intermix Shareholder at time of sale in 2005 - Brad Greenspan added:

"It has been three years since I worked around the clock pleading with other MySpace/Intermix shareholders to vote against the sale of MySpace to News Corporation in 2005. I knew that the value of the company was billions of dollars, however the deceptive practice of hiding MySpace financials by Intermix management robbed shareholders of their opportunity to adequately gauge the company's value"

Greenspan continued:

"This is a very simple case. Management of public companies have been sent a signal today that there are certain conditions that legally must be met prior to the sale of a publicly traded company."

1) Management makes a good faith effort to approach all potential buyers and ensure they know the company is for sale. And these companies get a chance to see the same financial info and metrics as any other potential buyer.

2) Management has disclosed all material segments of their business that could be considered important in a shareholder's decision to buy/sell. The Ruling today will hopefully push companies to become more and more clear and open with their financial info.

Greenspan expresses thanks for the hard work and relentless pursuit of the truth and accountability for shareholders by the attorneys of Coughlin, Stoia, Geller, Rudman, & Robbins LLP. Mr. Greenspan is not a client of the law firm and is only a member of the class for the federal class action lawsuit.

SOURCE: Brad Greenspan, Founder, MySpace.com

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