Intermix Settles Spyware Lawsuit Filed by Spitzer

New York Atty. Gen. Eliot Spitzer has reached an agreement in principle with Web marketer Intermix Media Inc. in which the company has agreed to pay $7.5 million over three years to settle accusations that Intermix surreptitiously installed software on computers.

Spitzer spokesman Brad Maione said a final agreement was two to three weeks away and must be approved by the court. But under the tentative agreement, Intermix would agree to cease ad-related downloads.

Spitzer filed the civil suit in April in a campaign against the fraudulent or nuisance-filled applications that he has said hurt Internet commerce.