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ISP cuts 'spam' from diet
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March 30, 1998: 1:18 p.m. ET
EarthLink wins $2M settlement, bans Cyber Promotions from junk e-mail
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NEW YORK (CNNfn) - EarthLink Network Inc. said Monday that it reached a $2 million settlement with online marketer Cyber Promotions Inc.
The agreement bars Cyber Promotions from sending unsolicited junk e-mail, or "spam," to EarthLink's customers.
EarthLink is an Internet service provider based in Pasadena, Calif.
The decision also prohibits Cyber Promotions and its founder, Sanford Wallace, from engaging in a comprehensive list of spam-related activities in the future.
In addition to the $2 million settlement, EarthLink said Wallace agreed to be held personally liable for $1 million if he sends spam to EarthLink members or enables anyone else to spam them. Wallace also will be held liable if he violates a number of other restrictions, including distribution of EarthLink member e-mail addresses.
Since last year, Cyber Promotions has lost legal battles with America Online and Bigfoot, a company that provides e-mail addresses.
Cyber Promotions has virtually been out of business since October when Agis, its backbone Internet service provider, terminated Cyber Promotions' connection.
Shares of EarthLink (ELNK) dropped 1/4 to 55-3/4 in late-morning trading. 
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