SAN DIEGO–LAWFUEL -Legal News Network –GreenZap®, Inc. (Pink Sheets: GZPN) (the “Company”), an online payment provider, has filed a lawsuit against website-hosting-company Liquid Web, Inc. and Vodien, Inc. for a total of $57.5 million. The suit is the first of many GreenZap is preparing against individual bloggers and hosting companies that maintain websites where defamatory comments are being posted concerning GreenZap and its executives.
According to GreenZap Vice President Linda Murphy, attempts made by GreenZap to communicate with the bloggers were met with malicious attacks. GreenZap’s counsel sent several letters to Liquid Web, Inc. requesting it voluntarily shut down one of its hosted websites due to its harmful and libelous content, but to no avail. The registered owners of the website, Vodien, Inc., have a Singapore address and have ignored GreenZap in spite of the company’s attempts. In addition to the hosting company, GreenZap has been able to identify several individual bloggers responsible for many of the postings and intends to add them to the action.
According to GreenZap CEO Damon Westmoreland, “The websites are nothing more than an online soap opera. There is advertising on these sites and the owners are getting paid based on the traffic they receive. Our company grew quickly over the last year, acquiring over 750,000 users mostly in the direct sales market, which presented an opportunity for these cyber-offenders to ride our coat tails and make a buck by defaming our company.”
Ms. Murphy said the blogs have been damaging to the Company’s growth creating an ongoing cloud of mistrust that it is forced to address on a daily basis with its customers and strategic partners alike.
While the laws surrounding Internet user responsibility is still unclear, GreenZap is not the first party to commence an action against a hosting site. In October 2006, a Florida jury awarded one Sue Scheff $11.3 million in an Internet defamation lawsuit. The article revealed that Scheff filed a lawsuit after a blogger called her a “crook,” “con artist” and a “fraud” on an Internet message board.
“With this type of precedent, recognizing the harm done to Internet businesses by these false blogs, we believe we can prevail and put a stop to the baseless statements and claims surrounding our organization,” said Mr. Westmoreland.
About GreenZap, Inc.
GreenZap, Inc., a San Diego, California based company, enables any business or individual with an email address to send and receive money securely and cost-effectively online. GreenZap’s system resembles PayPal® (eBay’s payment processor), which reports over 100 million users and a 2005 total dollar volume of payments of $27.5 billion. GreenZap differentiates itself by charging flat-rate fees versus a percentage of each transaction, and rewards its customers for using GreenZap’s services. Since opening June 1, 2005, GreenZap has grown to over 760,000 users. In October 2006, the company expanded its services to include a classifieds section called ZapExchange.
For more information, please visit www.greenzap.com.
Certain statements in this release, and other written or oral statements made by the Company, including the use of the words “expect,” “anticipate,” “estimate,” “project,” “forecast,” “outlook,” “target,” “objective,” “plan,” “goal,” “pursue,” “on track,” and similar expressions, are “forward-looking statements” and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements of the company to be different from those expressed or implied. The Company assumes no obligation and does not intend to update these forward-looking statements.