Napster Creditors Settle With Company
A federal bankruptcy judge approved a settlement that gives $2 million to Napster Inc.’s unsecured creditors and $3 million to German media company Bertelsmann.
The agreement ends a lawsuit filed in September against Bertelsmann by the creditors of the defunct music-sharing site. They had accused Bertelsmann of misrepresenting equity investments as loans and said Bertelsmann’s claims shouldn’t have priority over other creditors.
U.S. Bankruptcy Judge Peter Walsh approved the settlement, which releases Bertelsmann from claims related to the Napster bankruptcy case.
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