VeriSign hit with another unfair practices suit

By Scarlet Pruitt, IDG News Service

July 22, 2002 12:00 PM ET

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IDG News Service - Leading domain name registrar VeriSign Inc. was hit with another lawsuit Friday alleging that the company has engaged in unfair marketing practices in an attempt to snag its rivals' customers.
The latest suit, filed by InterCosmos Media Group Inc. on Friday, charges VeriSign with sending deceptive domain registration and renewal notices to customers of InterCosmos' directNIC.com registry site. The suit comes on the heels of similar accusations made by BulkRegister.com Inc., which lodged a lawsuit against VeriSign in May (see story) and by GoDaddy Software Inc. in June (see story). In both cases, VeriSign was issued a court injunction to stop the practice.
In all three cases, VeriSign is being accused of sending marketing material that misleads its rivals' customers into thinking that their domain name is about to expire and instructs them to renew with VeriSign.
InterCosmos filed suit in federal court in Louisiana claiming to have lost profits and customers due to VeriSign's "trickery." The New Orleans-based company is seeking damages for lost profits, restitution, mental anguish and attorneys' fees.
No one from VeriSign was immediately available this morning to comment on the suit.

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Story copyright 2009 International Data Group. All rights reserved.

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