Rhapsody Class Action Filing (DMN)

Embed Size (px)

Citation preview

  • 8/19/2019 Rhapsody Class Action Filing (DMN)

    1/18

    8

    0

    =

    4

    ;

    1

    6

    2

    7

    8>

    88

    80

    8=

    84

    8;

    81

    86

    82

    87

    0>

    08

    00

    0=

    04

    0;

    01

    06

    02

    ]he ir C. O m k ohe ]@E 8676>0)sogmbkcoheNorccp.mio Oieh Z. Bheeh (]@E 8=84=7)obheehNorccp.mio Okchegk Ehthsbh Biwhrd (]@E 0;>7=1) obiwhrdNorccp.mio 

    OGMBKCOHE & PI@GE]IE, CC^867>8 Qie Lhrohe Hvkeuk, 8>tb AciirGrvgek, MH 70184Tkckpbiek: (684) ;;6-677>Ahmsgogck: (684) ;;6-6778

    Dhvgd M. Ckk (]@E 87=64=)dckkNorccp.mio Gcsk M. ]mitt (]@E 0==4==)gsmittNorccp.mio OGMBKCOHE & PI@GE]IE, CC^Iek ^ist ]trkkt, ]ugtk 0;>>]he Arhemgsmi, MH 748>4

    Tkckpbiek: (48;) 220-666>Ahmsgogck: (48;) 220-8;6>

     Httirekys air ^chgetgaas hed ^ripiskd Mchss

    [EGTKD ]THTK] DG]TPGMT MI[PT

    AIP TBK EIPTBKPE DG]TPGMT IA MHCGAIPEGH

    DHQGD CIVKPW, QGMTIPLP[OOKEHMBKP, FPKFCG]BKP, hed DHQGD AHPHFBKP,gedgvgduhccy hed ie `kbhca iatbkoskcvks hed hcc itbkrs sgogchrcysgtuhtkd,

    ^chgetgaas,v.

    PBH^]IDW GETKPEHTGIEHC,GEM., h Dkchwhrk mirpirhtgie,

    Dkakedhet.

    Mhsk Ei.:

    MCH]] HMTGIE MIO^CHGET AIPDHOHFK] HED GEJ[EMTGQKPKCGKA

     8

    MCH]] HMTGIE MIO^CHGET0447=

    mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]

  • 8/19/2019 Rhapsody Class Action Filing (DMN)

    2/18

    8

    0

    =

    4

    ;

    1

    6

    2

    7

    8>

    88

    80

    8=

    84

    8;

    81

    86

    82

    87

    0>

    08

    00

    0=

    04

    0;

    01

    06

    02

    ^chgetgaas Dhvgd Ciwkry, Qgmtir Lruookehmbkr, Frkf Cgsbkr, hed Dhvgd

    Ahrhfbkr (micckmtgvkcy –^chgetgaas‟), gedgvgduhccy hed ie `kbhca ia tbkoskcvks hed hcc

    tbisk sgogchrcy sgtuhtkd (khmb, h –Mchss Oko`kr‟ hed, micckmtgvkcy, tbk –Mchss‟) hcckfk

    hs aicciws:

    EHT[PK IA TBK HMTGIE

    8. Tbgs gs h mchss hmtgie `riufbt `y ^chgetgaas, ie `kbhca ia tbkoskcvks hed

    tbk euokrius itbkr sgogchrcy-sgtuhtkd bicdkrs ia okmbhegmhc rgfbts ge

    mipyrgfbtkd ousgmhc wirls tbht Dkakedhet Pbhpsidy Getkrehtgiehc, Gem.

    (–Pbhpsidy‟ ir –Dkakedhet‟) bhs uskd wgtbiut okmbhegmhc cgmkesks ge he

    kfrkfgius, mietgeuius hed iefigef mhophgfe ia dkcg`krhtk mipyrgfbt

    geargefkoket.

    0. ]pkmgagmhccy, Pbhpsidy bhs — hed mietgeuks ti — uechwauccy rkpridumk

    hed/ir dgstrg`utk mipyrgfbtkd ousgmhc miopisgtgies (tbk –Virls‟) ti ogccgies

    ia uskrs vgh gts getkrhmtgvk miookrmghc ousgm strkhogef skrvgmk, hs wkcc hs gts

    iaacgek cgstkegef skrvgmk. Pbhpsidy rkpridumks hed/ir dgstrg`utks tbk Virls

    dkspgtk gts ahgcurk ti gdketgay hed/ir cimhtk tbk iwekrs ia tbisk miopisgtgies air

     phyoket ir ti privgdk tbko wgtb eitgmk ia Pbhpsidy‗s getket ti rkpridumk hed/

    ir dgstrg`utk tbk Virls.

    =. Pbhpsidy‗s geargefkoket ia ^chgetgaas‗ hed tbk Mchss Oko`krs‗

    okmbhegmhc rgfbts gs leiwgef hed wgccauc. ]umb usk ia tbk Virls mrkhtks

    su`sthetghc bhro hed gejury ti tbk mipyrgfbt bicdkrs, hed dgogegsbks tbk

    getkfrgty ia tbk Virls. Pbhpsidy‗s leiwgef hed wgccauc geargefkoket gs

    uechwauc hed wgtbiut justgagmhtgie, hs Pbhpsidy bhs mietgeuiuscy ahgckd ti usk

    hey iek ia tbk ohey hvhgch`ck okmbhegsos ti pripkrcy i`thge hutbirgzhtgie airtbk rkpridumtgie hed/ir dgstrg`utgie ia tbk Virls, wbktbkr ge tbk airo ia h

    vicuethry ir miopucsiry cgmkesk, hed wbktbkr ir eit tbk rgfbtsbicdkr gs rkhdgcy

    gdketgagh`ck. Tiutkd hs iek ia tbk khrcgkst [.].-`hskd su`smrgptgie strkhogef

    skrvgmks, Pbhpsidy bhs h sgfegagmhet hed gophmtauc prkskemk ge tbk ousgm

    0

    MCH]] HMTGIE MIO^CHGET0447=

  • 8/19/2019 Rhapsody Class Action Filing (DMN)

    3/18

    8

    0

    =

    4

    ;

    1

    6

    2

    7

    8>

    88

    80

    8=

    84

    8;

    81

    86

    82

    87

    0>

    08

    00

    0=

    04

    0;

    01

    06

    02

    gedustry, hed tbk hvhgch`ck rksiurmks ti pripkrcy i`thge hcc rkqugsgtk cgmkesks.

    Pbhpsidy‗s murrket gcckfhc prhmtgmks hed primkdurks ge mieekmtgie wgtb gts

    uecgmkeskd rkpridumtgie hed/ir dgstrg`utgie ia tbk mipyrgfbtkd Virls,

    mio`gekd wgtb gts ahgcurk ti phy iwkd okmbhegmhc riyhctgks, kvgdkemks gts

     prhmtgmk ia ueahgrcy priagtgef iaa tbk `hmls ia miopiskrs.

    J[PG]DGMTGIE HED QKE[K

    4. Tbgs hmtgie gs h mgvgc hmtgie ivkr wbgmb tbgs miurt bhs irgfgehc

     jurgsdgmtgie uedkr 02 [.].M. §§ 8==8 hed 8==2 ge tbht tbk mchgos bkrkge hrgsk

    uedkr akdkrhc mipyrgfbt chw (86 [.].M. § 8>8, kt skq.) (tbk –Mipyrgfbt Hmt‟).

    Jurgsdgmtgie hcsi kxgsts pursuhet ti 02 [.].M. § 8==0(d)(0) `kmhusk tbk ohttkr

    ge mietrivkrsy kxmkkds tbk suo ir vhcuk ia $;,>>>,>>> (kxmcusgvk ia getkrkst

    hed mists), gs h mchss hmtgie ge wbgmb h oko`kr ia tbk pripiskd mchss, gemcudgef

    ^chgetgaas, gs h mgtgzke ia h sthtk dgaakrket ario Dkakedhet Pbhpsidy, hed tbk

    euo`kr ia oko`krs ia tbk pripiskd mchss kxmkkds 8>>.

    ;. Qkeuk ge tbgs Dgstrgmt gs pripkr uedkr 02 [.].M. § 8=78(`) hed/ir 02

    [.].M. § 84>>(h). Ie geairohtgie hed `kcgka, h su`sthetghc phrt ia tbk hmts ia

    geargefkoket miopchgekd ia bkrkge immurs ir bhs immurrkd ge tbgs Dgstrgmt, hed

    Dkakedhet gs su`jkmt ti pkrsiehc jurgsdgmtgie ge tbgs Dgstrgmt.

    TBK ^HPTGK]

    1. ^chgetgaas hed tbk Mchss hrk gedgvgduhcs hed ketgtgks rksgdgef ge tbk [egtkd

    ]thtks hed khmb ia wbio, durgef tbk Mchss ^krgid (hs dkagekd bkrkge), iwe tbk

    rkpridumtgie hed dgstrg`utgie rgfbts ia mipyrgfbtkd ousgmhc wirls rkpridumkd

    hed dgstrg`utkd `y Dkakedhet Pbhpsidy.

    6. ^chgetgaa Dhvgd Ciwkry gs he gedgvgduhc wbi gs h rksgdket ia Fkirfgh.Or. Ciwkry bhs `kke h agxturk ia tbk ousgm gedustry air dkmhdks, hed cglk tbk

    oko`krs ia tbk mchss, bhs ohdk bgs cgvkcgbiid mrkhtgef hed pkrairogef ousgm.

    Or. Ciwkry gs h pricgagm siefwrgtkr hed pridumkr, hed gs tbk hutbir ir mi-

    hutbir ia oirk tbhe 8;> siefs air bgs pipuchr friups Mrhmlkr hed Mhopkr Qhe

    =

    MCH]] HMTGIE MIO^CHGET0447=

  • 8/19/2019 Rhapsody Class Action Filing (DMN)

    4/18

    8

    0

    =

    4

    ;

    1

    6

    2

    7

    8>

    88

    80

    8=

    84

    8;

    81

    86

    82

    87

    0>

    08

    00

    0=

    04

    0;

    01

    06

    02

    @kktbivke. @itb Mrhmlkr hed Mhopkr Qhe @kktbivke wkrk airokd ge

    Mhcgairegh. Or. Ciwkry rkmirdkd ohey ia bgs ousgmhc miopisgtgies, wbgmb hrk

    ht gssuk ge tbgs chwsugt, ge Mhcgairegh. Or. Ciwkry hcsi tiurs hed ohgethges bgs

     `iilgef hfkemy Mhcgairegh.

    2. ^chgetgaa Qgmtir Lruookehmbkr gs he gedgvgduhc wbi gs h rksgdket ia

    Mhcgairegh, rksgdgef ge tbk Mgty hed Miuety ia ]he Arhemgsmi. Or.

    Lruookehmbkr mi-aiuedkd tbk `hed Mhopkr Qhe @kktbivke. Cglk Or.

    Ciwkry, Or. Lruookehmbkr gs h pricgagm siefwrgtkr, hed gs tbk hutbir ir mi-

    hutbir ia euokrius ousgmhc wirls, gemcudgef ohey rkmirdkd `y Mhopkr Qhe

    @kktbivke. Ge hddgtgie ti hutbirgef hed/ir mi-hutbirgef ousgmhc wirls air

    Mhopkr Qhe @kktbivke, Or. Lruookehmbkr bhs hcsi rkckhskd ouctgpck sici

    hc`uos miethgegef euokrius siued rkmirdgefs tbht ko`idy bgs ousgmhc wirls.

    7. ^chgetgaa Frkf Cgsbkr gs he gedgvgduhc wbi gs h rksgdket ia Mhcgairegh,

    rksgdgef ge tbk Mgty hed Miuety ia ]heth Mruz. Or. Cgsbkr gs h rkeiwekd

    ousgmghe hed h oko`kr ia tbk `hed Mhopkr Qhe @kktbivke, hed gs he hutbir

    ir mi-hutbir ia euokrius ousgmhc wirls, gemcudgef ohey rkmirdkd `y Mhopkr

    Qhe @kktbivke. Ge hddgtgie ti hutbirgef hed/ir mi-hutbirgef ousgmhc wirls

    air Mhopkr Qhe @kktbivke, Or. Cgsbkr bhs hcsi rkckhskd ouctgpck sici hc`uos

    miethgegef euokrius siued rkmirdgefs tbht ko`idy bgs ousgmhc wirls.

    8>. ^chgetgaa Dhvgd Ahrhfbkr gs he gedgvgduhc wbi gs h rksgdket ia Mhcgairegh,

    rksgdgef ge tbk Mgty hed Miuety ia Cis Hefkcks. Or. Ahrhfbkr mi-aiuedkd tbk

     `hed Mrhmlkr, hed bhs hutbirkd ir mi-hutbirkd euokrius ousgmhc wirls

    rkmirdkd `y tbht `hed. Ge hddgtgie, Or. Ahrhfbkr gs h rkeiwekd ousgmghe wbi

    bhs micch`irhtkd wgtb euokrius itbkr wkcc-leiwe hrtgsts.88. Dkakedhet Pbhpsidy gs h Dkchwhrk mirpirhtgie wgtb gts prgemgphc pchmk

    ia `usgekss ht 6>8 ;tb  Hvkeuk, ]ugtk =8>>, ]khttck, Vhsbgeftie 728>4.

    Pbhpsidy gs ducy quhcgagkd ti di hed gs digef `usgekss ge Mhcgairegh. Gt bhs h

    Mhcgairegh hfket air skrvgmk ia primkss. Gt ipkrhtks he iaagmk ge ]he Arhemgsmi,

    4

    MCH]] HMTGIE MIO^CHGET0447=

  • 8/19/2019 Rhapsody Class Action Filing (DMN)

    5/18

    8

    0

    =

    4

    ;

    1

    6

    2

    7

    8>

    88

    80

    8=

    84

    8;

    81

    86

    82

    87

    0>

    08

    00

    0=

    04

    0;

    01

    06

    02

    Mhcgairegh. Ie geairohtgie hed `kcgka, Pbhpsidy phys Mhcgairegh thxks, hed

    iwes hed/ir ckhsks rkhc pripkrty ge Mhcgairegh air gts ]he Arhemgsmi iaagmk.

    Oirkivkr, tbk dhth rkckvhet ti Pbhpsidy‗s geargefgef hmtgvgtgks gs prgohrgcy

    kckmtriegm hed mhe `k ohdk hvhgch`ck wgtb khsk ge Mhcgairegh.

    80. Tbriufb gts getkrhmtgvk Getkrekt-`hskd hed hppcgmhtgie-`hskd skrvgmks,

    Pbhpsidy ketkrs geti miookrmghc trheshmtgies, mietrhmts hed itbkr

    hrrhefkokets wgtb rksgdkets ia Mhcgairegh. Pbhpsidy‗s murrket Ked [skr

    Cgmkesk Hfrkkoket (–K[CH‟) spkmgagmhccy privgdks tbht gt sbhcc `k fivkrekd

     `y tbk chws ia tbk ]thtk ia Mhcgairegh. Tbht shok K[CH dksgfehtks, ge gts

    airuo skckmtgie mchusk, tbht hcc dgsputks wgcc `k su`jkmt ti tbk –kxmcusgvk

     jurgsdgmtgie ia tbk sthtk hed akdkrhc miurts sgttgef ge ]he Arhemgsmi, ge tbk ]thtk

    ia Mhcgairegh‟ wbgmb kxbg`gts Pbhpsidy‗s rkmifegtgie tbht tbgs Dgstrgmt gs he

    hppriprghtk vkeuk. (]kk, Pbhpsidy‗s K[CH ario gts wk`sg tk

    www.rbhpsidy.mio, htthmbkd bkrkti hs Kxbg`gt H). Ie geairohtgie hed `kcgka,

    Pbhpsidy hdvkrtgsks dgrkmtcy ti Mhcgairegh miesuokrs. ^krairohemk ia vhrgius

    ia Dkakedhet‗s mietrhmts rksucts ge tbk leiwgef hed rkpkhtkd uecgmkeskd

    rkpridumtgie hed dgstrg`utgie ia ousgmhc wirls ivkr tbk Getkrekt ti Mhcgairegh

    rksgdkets. Dkakedhet‗s iecgek hmtgvgtgks leiwgefcy hed purpiskcy getkrhmt wgtb

    tbk mioputkrs hed itbkr kckmtriegm dkvgmks ia rksgdkets ge Mhcgairegh hed sicgmgt

     `usgekss ario Mhcgairegh miesuokrs, gemcudgef Mchss Oko`krs.

    AHMT[HC @HMLFPI[ED

    8=. ^chgetgaas hed tbk Mchss hrk tbk mipyrgfbt iwekrs ir iwekrs ia kxmcusgvk

    rgfbts ge euokrius mipyrgfbtkd miopisgtgies ge tbk [egtkd ]thtks, hed bhvk tbk

    okmbhegmhc rgfbts ti tbksk Virls.84. ^ursuhet ti tbk Mipyrgfbt Hmt, ^chgetgaas hed tbk Mchss pisskss kxmcusgvk

    rgfbts rkfhrdgef tbk rkpridumtgie hed/ir dgstrg`utgie ia tbk mipyrgfbtkd Virls,

    gemcudgef tbk hssimghtkd cgmkesgef rgfbts ti sumb hmtgvgtgks.

    ;

    MCH]] HMTGIE MIO^CHGET0447=

    http://www.rhapsody.com/

  • 8/19/2019 Rhapsody Class Action Filing (DMN)

    6/18

    8

    0

    =

    4

    ;

    1

    6

    2

    7

    8>

    88

    80

    8=

    84

    8;

    81

    86

    82

    87

    0>

    08

    00

    0=

    04

    0;

    01

    06

    02

    8;. ^chgetgaas hed tbk Mchss dgstrg`utk, skcc hed/ir cgmkesk tbk Virls ge tbk

    airo ia MDs, mhsskttks, hed itbkr thefg`ck okdgh tbriufbiut tbk [egtkd ]thtks,

    gemcudgef ge Mhcgairegh. ^chgetgaas hed tbk Mchss rkpridumk, dgstrg`utk, skcc, hed/

    ir cgmkesk tbk Virls ge tbk airo ia dgfgthc hudgi agcks dkcgvkrkd hed pkrairokd

    vgh tbk Getkrekt.

    81. ^chgetgaas hed tbk Mchss bhvk gevkstkd hed mietgeuk ti gevkst su`sthetghc

    oieky, kekrfy, tgok, kaairt hed mrkhtgvk thcket ti mrkhtk hed dkvkcip tbk Virls.

    86. Pbhpsidy gs he getkrhmtgvk miookrmghc ousgm strkhogef skrvgmk (hoief

    itbkr skrvgmks) tbht ipkrhtks he Getkrekt wk`sgtk (www.rbhpsidy.mio)

     pkrogttgef uskrs ti mustiogzk cgstkegef mbigmks air rkmirdkd ousgm hed ti

    mrkhtk Getkrekt –rhdgi sthtgies.‟ Gts Getkrekt skrvgmks hrk diwecihdh`ck ti

    mioputkrs hed bhedbkcd dkvgmks (vgh oi`gck hppcgmhtgies) ohlgef gts

    strkhogef mhph g̀cgtgks wgdkcy hvhgch`ck ti ogccgies ia uskrs. Gedkkd, Pbhpsidy

     `ihsts tbht uskrs mhe –\s_trkho ogccgies ia siefs ir diwecihd uecgogtkd

     pchycgsts hed siefs strhgfbt ti yiur pbiek ir th`ckt hed ekvkr ogss h

     `kht.‟ (]kk, Pbhpsidy‗s Hpps hed Dkvgmks phfk ie gts wk`sgtk

    www.rbhpsidy.mio, htthmbkd bkrkti hs Kxbg`gt @).

    82. Pbhpsidy iaakrs gts skrvgmks ti tbk pu`cgm vgh dgaakrket su`smrgptgie-

     `hskd phmlhfks: (8) gts –uePhdgi‟ pchtairo (he getkrekt rhdgi skrvgmk chuembkd

    ge ir hriued Juek 0>84)< hed (0) gts –^rkogkr‟ pchtairo. @itb su`smrgptgie

     pchtairos hrk iaakrkd ti prispkmtgvk su`smrg`krs ie h cgogtkd –arkk trghc‟ `hsgs.

    87. Tbk –uePhdgi‟ su`smrgptgie (mistgef $4.77 pkr oietb) pkrogts uskrs ti:

    • Hmmkss h –^krsiehcgzkd rhdgi `hskd ie yiur ahvirgtk hrtgst ir trhml‟<

    –]lgp hs ohey siefs yiu whet‟<• Kejiy –Bgfb quhcgty, hd-arkk hudgi ie oi`gck hed ie yiur mioputkr‟<

    hed

    • –Diwecihd hey sief ti cgstke iaacgek ” up ti 0; siefs.‟ (]kk 

    www.rbhpsidy.mio.)

    1

    MCH]] HMTGIE MIO^CHGET0447=

    http://www.rhapsody.com/

  • 8/19/2019 Rhapsody Class Action Filing (DMN)

    7/18

    8

    0

    =

    4

    ;

    1

    6

    2

    7

    8>

    88

    80

    8=

    84

    8;

    81

    86

    82

    87

    0>

    08

    00

    0=

    04

    0;

    01

    06

    02

    0>. Tbk ^rkogkr tgkr (mistgef $7.77 pkr oietb) iaakrs su`smrg`krs tbk shok

    uePhdgi akhturks, pcus tbk aicciwgef `kekagts:

    • –Diwecihd hey sief ti cgstke iaacgek ” uecgogtkd‟<

    • –[ecgogtkd, ie-dkohed hmmkss ti ogccgies ia siefs‟<• –Cgstke ie biok hudgi dkvgmks‟:

    • H –DJ wgtb Pbhpsidy‟ akhturk air lgds< hed

    • –Ahogcy pches‟ (wbgmb hcciw up ti ; skphrhtk hmmiuets ie h sgefck

    ahogcy pche ti pkrogt sgoucthekius usk ia tbk ^rkogkr pchtairo ia

    Pbhpsidy). (]kk www.rbhpsidy.mio.)

    08. Pbhpsidy‗s wk`sgtk murrketcy `ihsts tbht gts –ckhdgef strkhogef ousgm

    skrvgmks‟ fgvk oko`krs –hd-arkk hmmkss ti oirk tbhe =0 ogccgie siefs.‟ (]kk 

    www.rbhpsidy.mio.) Hs ia Dkmko`kr 0>88, Pbhpsidy mchgokd tbht gt bhd

    surphsskd 8 ogccgie su`smrg`krs. Hs ia Jucy 0>84, Pbhpsidy `ihstkd 0 ogccgie

     phygef su`smrg`krs air gts strkhogef skrvgmks. (]kk, Pbhpsidy‗s Jucy 07, 0>84

     prkss rkckhsk ario gts wk`sgtk www.rbhpsidy.mio, htthmbkd bkrkti hs Kxbg`gt

    M). Hs ia Jucy 0>8;, Pbhpsidy mchgokd ti bhvk surphsskd = ogccgie wircdwgdk

    su`smrg`krs. (]kk, Pbhpsidy‗s Jucy 00, 0>8; prkss rkckhsk ario gts wk`sgtk

    www.rbhpsidy.mio, htthmbkd bkrkti hs Kxbg`gt D). Mieskquketcy, Pbhpsidy

    khres ogccgies ia dicchrs ge rkvkeuks air gts skrvgmks, gemcudgef ario rksgdkets

    ia Mhcgairegh.

    00. Pbhpsidy‗s Getkrekt ousgm skrvgmk gs getkedkd ti hed diks prioitk

    Pbhpsidy‗s skrvgmks ge h oheekr dksgfekd ti httrhmt arkk-trghc uskrs hed phgd

    su`smrg`krs ia gts skrvgmks.

    0=. Pbhpsidy rkfuchrcy rkpridumks hed/ir dgstrg`utks ti cgstkekrs hed uskrsia gts skrvgmks ^chgetgaas‗ hed Mchss Oko`krs‗ ousgmhc miopisgtgies, hed bhs

    diek si rkpkhtkdcy air ht ckhst tbk phst tbrkk ykhrs. Ge tbk miursk ia rkedkrgef

    skrvgmks ti gts su`smrg`krs, Pbhpsidy rkpridumks hed/ir dgstrg`utks ^chgetgaas‗

    hed Mchss Oko`krs‗ ousgmhc miopisgtgies euokrius tgoks.

    6

    MCH]] HMTGIE MIO^CHGET0447=

    http://www.rhapsody.com/http://www.rhapsody.com/http://www.rhapsody.com/

  • 8/19/2019 Rhapsody Class Action Filing (DMN)

    8/18

    8

    0

    =

    4

    ;

    1

    6

    2

    7

    8>

    88

    80

    8=

    84

    8;

    81

    86

    82

    87

    0>

    08

    00

    0=

    04

    0;

    01

    06

    02

    04. Pbhpsidy bhs eit cgmkeskd ^chgetgaas‗ hed tbk Mchss Oko`krs‗ ousgmhc

    miopisgtgies hs rkqugrkd ti rkpridumk ir dgstrg`utk tbk Virls ti gts uskrs hed

    su`smrg`krs.

    0;. Ie geairohtgie hed `kcgka, h sgfegagmhet euo`kr ia Mhcgaireghes wiucd

    bhvk phgd ti cgstke ti hed kejiy ^chgetgaas‗ hed Mchss Oko`krs‗ ousgmhc

    miopisgtgies tbriufb okmbhegsos itbkr tbhe Pbhpsidy (k.f., tbriufb tbk

     purmbhsk ia dgfgthc diwecihds) ga tbk Virls bhd eit `kke rkpridumkd hed/ir

    dgstrg`utkd `y Pbhpsidy, hed Pbhpsidy‗s wgccauc geargefkoket bhs tbus

    dgogegsbkd tbk Mhcgairegh-`hskd vhcuk ia tbksk Virls. Aurtbkr, gt whs

    airkskkh`ck ti Pbhpsidy tbht gts wgccauc geargefkoket wiucd dgogegsb tbk

    Mhcgairegh-`hskd vhcuk ia tbk geargefkd Virls.

    01. H skrvgmk sumb hs Pbhpsidy, getkrkstkd ge rkpridumgef hed/ir

    dgstrg`utgef ousgmhc miopisgtgies ko`idgkd ge pbieirkmirds, mhe i`thge kgtbkr

    h vicuethry cgmkesk, skmurkd `y ekfitghtgef wgtb gedgvgduhc mipyrgfbt iwekrs,

    ir h miopucsiry cgmkesk, hs iutcgekd uedkr 86 [.].M. § 88;. H miopucsiry

    cgmkesk gs eit frhetkd hutiohtgmhccy uedkr tbk Mipyrgfbt Hmt. Ge irdkr ti

    i`thge h miopucsiry cgmkesk, Pbhpsidy gs rkqugrkd ti sked h eitgmk ia gts getket

    ti usk ousgmhc miopisgtgies ti khmb mipyrgfbt iwekr –`kairk ir wgtbge tbgrty

    dhys hatkr ohlgef, hed `kairk dgstrg`utgef hey pbieirkmirds ia tbk wirl.‟ ]kk 

    86 [.].M. § 88;(`)(8). Tbgs eitgmk ia getketgie ti i`thge h miopucsiry cgmkesk

     ” miooiecy rkakrrkd ti hs h –EIG‟ ” skrvks tbk vgthc auemtgie ia hckrtgef

    mipyrgfbt iwekrs ti tbk usk ia tbkgr ousgmhc miopisgtgies hed, ge ture, tbk

    rgfbt ti miopkeshtgie air tbht usk. Tbk ahgcurk ti tgokcy agck ir skrvk h EIG

    –airkmcisks tbk pissg`gcgty ia h miopucsiry cgmkesk hed, ge tbk h`skemk ia hekfitghtkd cgmkesk, rkedkrs tbk ohlgef hed dgstrg`utgie ia pbieirkmirds

    hmtgieh`ck hs hmts ia geargefkoket.‟ 86 [.].M. §88;(`)(0).

    06. Pbhpsidy bhs eit i`thgekd vicuethry ir miopucsiry cgmkesks air tbk

    rkpridumtgie hed/ir dgstrg`utgie ia tbk ousgmhc miopisgtgies ht gssuk ge tbgs

    2

    MCH]] HMTGIE MIO^CHGET0447=

  • 8/19/2019 Rhapsody Class Action Filing (DMN)

    9/18

    8

    0

    =

    4

    ;

    1

    6

    2

    7

    8>

    88

    80

    8=

    84

    8;

    81

    86

    82

    87

    0>

    08

    00

    0=

    04

    0;

    01

    06

    02

    cgtgfhtgie. Vbgck Pbhpsidy bhs rkhpkd tbk agehemghc rkwhrds ia rkpkhtkdcy

    vgichtgef tbk Mipyrgfbt Hmt, ousgmhc miopisgtgie rgfbtsbicdkrs hrk ckat

    koptybhedkd. Tbgs ahgcurk mhe iecy ckhd ti iek miemcusgie: tbht Pbhpsidy

    vhcuks tbk kxpkdgkemy hed agehemghc `kekagts ia wbickshck mipyrgfbt

    geargefkoket ivkr tbk mist hssimghtkd wgtb i`thgegef tbk hppriprghtk cgmkesk.

    02. Pbhpsidy‗s uechwauc rkpridumtgie hed/ir dgstrg`utgie ia ^chgetgaas‗ hed

    Mchss Oko`krs‗ mipyrgfbtkd wirls bhs su`sthetghccy bhrokd hed mietgeuks ti

    bhro ^chgetgaas hed tbk Mchss Oko`krs.

    07. ^chgetgaas mhe gdketgay hcc ia tbk mipyrgfbtkd ousgmhc miopisgtgies air

    wbgmb tbky iwe tbk okmbhegmhc rgfbts, hed wbgmb Pbhpsidy bhs gcckfhccy

    rkpridumkd hed/ir dgstrg`utkd air gts uskrs. H `rgka, eie-kxbhustgvk hed

    gccustrhtgvk cgst ia ^chgetgaas‗ geargefkd Virls gemcudk, `ut gs eit cgogtkd ti, tbk

    aicciwgef miopisgtgies (hoief ohey itbkrs): –Hcoied Frivk‟, Mipyrgfbt

    Pkfgstrhtgie Ei. ^Hu>>=614>=0< –Fkt Ie Diwe tbk Pihd‟, Mipyrgfbt

    Pkfgstrhtgie Ei. ^Hu>>=64;=40< –Lgef ia @hlkrsagkcd‟, Mipyrgfbt

    Pkfgstrhtgie Ei. ^Hu>>=64;=48< –Tiegfbt G Mriss tbk @irdkr‟, Mipyrgfbt

    Pkfgstrhtgie Ei. ^Hu>>=64;==2< –]ufhrtiwe‟, Mipyrgfbt Pkfgstrhtgie Ei.

    ^H>>>878782=< –Iut Cglk H Cgie‟, Mipyrgfbt Pkfgstrhtgie Ei.

    ^H>>>878782=< –Dhrlke Wiur Diir‟, Mipyrgfbt Pkfgstrhtgie Ei.

    ^H>>>878782=< hed –Wiu Fit Wiurskca Geti Tbgs‟, Mipyrgfbt Pkfgstrhtgie Ei.

    ^Hu>>=64;=01. ^chgetgaas bhvk rkmkgvkd Mkrtgagmhtks ia Mipyrgfbt Pkfgstrhtgie

    ario tbk Pkfgstkr ia Mipyrgfbts air tbksk Virls. (]kk Kxbg`gt K.) Ie khmb ia

    tbk Mkrtgagmhtks ia Mipyrgfbt Pkfgstrhtgie htthmbkd bkrkti, ^chgetgaas‗

    gdketgaygef geairohtgie gs rkhdgcy hvhgch`ck, hs gs tbk miethmt geairohtgie wgtbrkspkmt ti rkqukstgef rgfbts hed pkrogssgies ge mieekmtgie wgtb tbisk rkfgstkrkd

    Virls.

    =>. Gedkkd, ge hdogssgie ia gts wriefdigef, ge Ak`ruhry 0>81, Pbhpsidy

    (tbriufb gts tbgrd phrty hfket tbk Bhrry Aix Hfkemy) gssukd airty-aiur EIGs ti

    7

    MCH]] HMTGIE MIO^CHGET0447=

  • 8/19/2019 Rhapsody Class Action Filing (DMN)

    10/18

    8

    0

    =

    4

    ;

    1

    6

    2

    7

    8>

    88

    80

    8=

    84

    8;

    81

    86

    82

    87

    0>

    08

    00

    0=

    04

    0;

    01

    06

    02

    ^chgetgaa Ciwkry pkrthgegef ti hpprixgohtkcy 8>> dgaakrket ousgmhc wirls

    ko`idgkd ge siued rkmirdgefs `y Mrhmlkr hed Mhopkr Qhe @kktbivke (tbk

    –0>81 EIGs‟). Tbk 0>81 EIGs (hcc gdketgaygef Pbhpsidy hs tbk –Cgmkeskk‟)

    rkackmt uechwauccy `hmldhtkd –Kxpkmtkd Dhtk\s_ ia Dgstrg`utgie‟ rhefgef ario

    Ak`ruhry 0, 0>>; ti Juek =, 0>8;. Fgvke Pbhpsidy‗s ahgcurk ti tgokcy trhesogt

     EIGs pursuhet ti 86 [.].M. § 88;( )̀(8), tbk 0>81 EIGs hrk gevhcgd, hed

    Pbhpsidy gs airkmciskd ario tbk –pissg`gcgty ia h miopucsiry cgmkesk‟ hed gts

    ahgcurk ti hctkrehtgvkcy i`thge h ekfitghtkd cgmkesk ario ^chgetgaas rkedkrs

    Pbhpsidy‗s uecgmkeskd ohlgef hed dgstrg`utgie ia ^chgetgaas‗ ousgmhc wirls

    –hmtgieh`ck hs hmts ia geargefkoket‟ pursuhet ti 86 [.].M. §88;(`)(0).

    =8. Pbhpsidy‗s kfrkfgius hed wgccauc vgichtgies ia ^chgetgaas‗ hed tbk Mchss

    Oko`krs‗ rgfbts hrk bgfbcgfbtkd `y gts 0>81 EIGs miethgegef tbk

    miespgmuiuscy `hmldhtkd –Kxpkmtkd Dhtk\s_ ia Dgstrg`utgie.‟ Oirkivkr, ge

    hddgtgie ti gts iwe h`gcgty ti rkskhrmb tbk gdketgty ia okmbhegmhc rgfbts iwekrs,

    Pbhpsidy utgcgzks tbk Bhrry Aix Hfkemy ti privgdk gts okmbhegmhc cgmkesgef

    skrvgmks, wbgmb ie geairohtgie hed `kcgka, mietrics iek ia tbk chrfkst dhth`hsks

    ie ousgm miopisgtgies ge tbk wircd, hed tbk oist mioprkbkesgvk dhth`hsk ge

    tbk [egtkd ]thtks. Hs tbk 0>81 EIGs dkoiestrhtk, Pbhpsidy, kgtbkr dgrkmtcy ir

    tbriufb gts hfket, tbk Bhrry Aix Hfkemy, pissksskd tbk okhes ti gdketgay hed

    cimhtk tbk rgfbtbicdkrs ia ousgmhc wirls `kgef rkpridumkd hed/ir dgstrg`utkd

    ie gts strkhogef pchtairo, `ut iptkd eit i`thge tbk rkqugrkd cgmkesgef prgir ti

    strkhogef sumb ousgmhc wirls.

    =0. Gedkkd, tbk Mipyrgfbt Hmt hcsi privgdks h spkmgagm oktbidicify ti

    i`thge h okmbhegmhc cgmkesk air tbk dgstrg`utgie hed/ir rkpridumtgie iamipyrgfbtkd wirls kvke wbke tbk cgmkeskk bhs miedumtkd h skhrmb air tbk

    rgfbtsbicdkr `ut bhs `kke ueh`ck ti gdketgay bgo ir bkr. ]pkmgagmhccy, 86 [.].M.

    §88;(`)(8) privgdks tbht, –Ga tbk rkfgstrhtgie ir itbkr pu`cgm rkmirds ia tbk

    Mipyrgfbt Iaagmk di eit gdketgay tbk mipyrgfbt iwekr hed gemcudk he hddrkss ht

    8>

    MCH]] HMTGIE MIO^CHGET0447=

  • 8/19/2019 Rhapsody Class Action Filing (DMN)

    11/18

    8

    0

    =

    4

    ;

    1

    6

    2

    7

    8>

    88

    80

    8=

    84

    8;

    81

    86

    82

    87

    0>

    08

    00

    0=

    04

    0;

    01

    06

    02

    wbgmb eitgmk mhe `k skrvkd, gt sbhcc `k suaagmgket ti agck tbk eitgmk ia getketgie

    ge tbk Mipyrgfbt Iaagmk.‟ ^kr tbk [.]. Mipyrgfbt Iaagmk. (rkv. 8>/0>8;)

    Mgrmuchr 6=, Miopucsiry Cgmkesk air Ohlgef hed Dgstrg`utgef ^bieirkmirds

    (htthmbkd bkrkti hs Kxbg`gt A), iecy twi stkps hrk ekkdkd ti kaakmtuhtk sumb

    eitgmk: (8) agck he EIG ge tbk Cgmkesgef Dgvgsgie ia tbk Mipyrgfbt Iaagmk< hed

    (0) sked tbk Mipyrgfbt Iaagmk h sthtutiry agcgef akk air khmb tgtck cgstkd ge tbk

     EIG. ( Gd., ht =.) Tbk EIG agcgef akks, kaakmtgvk Ohy 8, 0>84, hrk $6; air tbk

    agrst tgtck, hed $0> air khmb hddgtgiehc tgtck (pkr friup ia 8>). (]kk  [.].

    Mipyrgfbt Iaagmk, –Cgmkesgef Akks‟, hvhgch`ck ht bttp://mipyrgfbt.fiv/

    cgmkesgef/akks.btoc (chst vgsgtkd Ak`. 02, 0>81). Tbkrk gs ei vhcgd rkhsie air

    Pbhpsidy‗s ahgcurk ti usk tbgs sthtutiry primkdurk air i`thgegef h miopucsiry

    cgmkesk air tbk Virls wbkrk tbk mipyrgfbt iwekr gs ckfgtgohtkcy ueleiwe,

    ckhdgef ti tbk miemcusgie tbht Pbhpsidy (8) ahgckd ti ohlk rkhsieh`ck kaairts ti

    gdketgay tbk rgfbtsbicdkrs, hed/ir (0) dkmgdkd eit ti miopcy wgtb tbk

    miopucsiry cgmkesgef primkss air uegdketgagkd rgfbtsbicdkrs.

    ==. Hs h dgrkmt hed prixgohtk rksuct ia Pbhpsidy‗s miedumt hcckfkd bkrkge,

    ^chgetgaas hed tbk Mchss Oko`krs hrk ketgtckd ti rkmivkr hcc primkkds hed itbkr

    miopkeshtgie rkmkgvkd ir ti `k rkmkgvkd `y Pbhpsidy air gts ahgcurk ti phy

    riyhctgks. Tbgs gemcudks hey getkrkst hmmrukd ie tbk riyhcty aueds

    gehppriprghtkcy wgtbbkcd ario ^chgetgaas hed tbk Mchss Oko`krs. ^chgetgaas hed

    tbk Mchss Oko`krs bhvk `kke dhohfkd, hed Pbhpsidy bhs `kke uejustcy

    kergmbkd, ge he hoiuet tbht gs eit hs ykt auccy hsmkrthgekd `ut wbgmb ^chgetgaas

    gs geairokd hed `kcgkvks gs eit ckss tbhe $8;>,>>>,>>>, hmmirdgef ti priia ht

    trghc.=4. Tbk Mipyrgfbt Hmt privgdks sthtutiry pkehctgks ti dgsmiurhfk

    Pbhpsidy‗s geargefkoket, gemcudgef sthtutiry dhohfks hwhrds ia `ktwkke

    $6;> hed $=>,>>> air khmb geargefkd wirl, hed up ti $8;>,>>> air h wgccauc

    geargefkoket.

    88

    MCH]] HMTGIE MIO^CHGET0447=

  • 8/19/2019 Rhapsody Class Action Filing (DMN)

    12/18

    8

    0

    =

    4

    ;

    1

    6

    2

    7

    8>

    88

    80

    8=

    84

    8;

    81

    86

    82

    87

    0>

    08

    00

    0=

    04

    0;

    01

    06

    02

    MCH]] HCCKFHTGIE]

    =;. ^chgetgaas `rgef tbgs hmtgie ie `kbhca ia tbkoskcvks hed ie `kbhca ia hcc

    itbkr sgogchrcy sgtuhtkd iwekrs ia okmbhegmhc rgfbts air rkfgstkrkd ousgmhc

    miopisgtgies, wbgmb rgfbts wkrk gopripkrcy geargefkd `y Pbhpsidy‗s

    uecgmkeskd rkpridumtgie hed/ir dgstrg`utgie ia tbisk miopisgtgies. Tbk

     pripiskd mchss gs mioprgskd ia hed dkagekd hs aicciws:

    \IPGFGEHC_

    Hcc iwekrs ia okmbhegmhc dgstrg`utgie hed rkpridumtgie rgfbts ge

    ousgmhc miopisgtgies rkfgstkrkd uedkr [egtkd ]thtks akdkrhc chw,

    wbgmb miopisgtgies wkrk rkpridumkd ir dgstrg`utkd `y Pbhpsidy

    wgtbiut Pbhpsidy agrst i`thgegef h vicuethry ir miopucsiry cgmkesk,

    sgemk Ohrmb 6, 0>8=.

    \]^CGT_

    (8)Hcc iwekrs ia okmbhegmhc dgstrg`utgie hed rkpridumtgie rgfbts ge

    ousgmhc miopisgtgies rkfgstkrkd uedkr [egtkd ]thtks akdkrhc chw,

    wbgmb miopisgtgies wkrk rkpridumkd ir dgstrg`utkd `y

    Pbhpsidy sgemk Ohrmb 6, 0>8=, wgtbiut Pbhpsidy agrst

    i`thgegef h vicuethry ir miopucsiry cgmkesk.

    (0)Hcc iwekrs ia okmbhegmhc dgstrg`utgie hed rkpridumtgie rgfbts ge

    ousgmhc miopisgtgies, wbgmb miopisgtgies wkrk rkfgstkrkd

    uedkr [egtkd ]thtks akdkrhc chw wgtb he kaakmtgvk dhtk ia

    rkfgstrhtgie pursuhet ti 86 [.].M. § 480, hed wbgmb

    miopisgtgies wkrk rkpridumkd ir dgstrg`utkd `y Pbhpsidy sgemkOhrmb 6, 0>8=, wgtbiut Pbhpsidy agrst i`thgegef h vicuethry ir

    miopucsiry cgmkesk.

    Hs dkagekd h`ivk, tbk pripiskd mchss diks eit miesgst ia tbk aicciwgef gedgvgduhcs

    (hoief itbkrs): eiergfbtsbicdkrs ia okmbhegmhc rgfbts, iwekrs ia ousgmhc

    80

    MCH]] HMTGIE MIO^CHGET0447=

  • 8/19/2019 Rhapsody Class Action Filing (DMN)

    13/18

    8

    0

    =

    4

    ;

    1

    6

    2

    7

    8>

    88

    80

    8=

    84

    8;

    81

    86

    82

    87

    0>

    08

    00

    0=

    04

    0;

    01

    06

    02

    miopisgtgies tbht hrk eit rkfgstkrkd uedkr [egtkd ]thtks akdkrhc chw, hed iwekrs ia

    rkfgstkrkd miopisgtgies air wbgmb h vicuethry ir miopucsiry okmbhegmhc cgmkesk whs

     privgdkd ti Pbhpsidy.

    =1. Tbgs hmtgie ohy `k pripkrcy `riufbt hed ohgethgekd hs h mchss hmtgie

     `kmhusk tbkrk gs h wkcc-dkagekd mioouegty ia getkrkst ge tbk cgtgfhtgie hed tbk

    oko`krs ia tbk pripiskd mchss hrk mckhrcy hed khsgcy hsmkrthgeh`ck hed

    gdketgagh`ck. Tbk rkqugrkd kckokets ia oko`krsbgp air tbk mchss, sumb hs

    iwekrsbgp ia okmbhegmhc dgstrg`utgie hed rkpridumtgie rgfbts ge rkfgstkrkd

    ousgmhc miopisgtgies wgtbge h phrtgmuchr tgok arhok hrk i`jkmtgvk hed

    hsmkrthgeh`ck.

    =6. Tbk mchss air wbisk `kekagt tbgs hmtgie gs `riufbt gs si euokrius tbht

     jigedkr ia hcc mchss oko`krs gs goprhmtgmh`ck. ^chgetgaas hrk geairokd hed

     `kcgkvk tbht tbkrk hrk buedrkds ir tbiusheds ia mchss oko`krs hed tbht tbisk

    mchss oko`krs mhe `k rkhdgcy hsmkrthgekd ario Pbhpsidy‗s dhth`hsk agcks hed

    rkmirds, hed vgh dgsmivkry ge tbgs hmtgie. Air kxhopck, Pbhpsidy sbiucd

    ohgethge rkmirds ia hcc ia tbk ousgmhc miopisgtgies gt rkpridumks ir dgstrg`utks.

    [pie geairohtgie hed `kcgka, Pbhpsidy bhs rkhdgcy hvhgch`ck hmmkss ti tbk

    chrfkst dhth`hsk ia okmbhegmhc rgfbtsbicdkrs ge tbk [egtkd ]thtks, vgh gts hfket,

    tbk Bhrry Aix Hfkemy, ge irdkr ti gdketgay mchss oko`krs. Pbhpsidy ohy hcsi

    hmmkss tbk [egtkd ]thtks Mipyrgfbt Iaagmk‗s mhthcifuk hed itbkr rkmirds ti

    miedumt h skhrmb, ir bhvk tbk Mipyrgfbt Iaagmk miedumt h skhrmb air Pbhpsidy.

    Ge hddgtgie, upie geairohtgie hed `kcgka, Pbhpsidy hcsi ohgethges rkmirds ia

    rgfbtsbicdkrs wbi bhvk su`ogttkd miopchgets ti Pbhpsidy air gts usk ia tbkgr

    Virls wgtbiut cgmkesk. Pbhpsidy ohy hcsi skkl ti i t̀hge geairohtgie h`iut pitketghc mchss oko`krs ario pkrairogef rgfbts irfhegzhtgies sumb hs H]MH ,̂

    @OG, ir ]K]HM. Tbkrk hrk hcsi tbgrd phrty getkrhmtgvk strkhogef ousgm riyhcty

    micckmtgie hfkemgks wbgmb ohy miedumt hudgts ti gdketgay tbk ousgmhc

    miopisgtgies air wbgmb Pbhpsidy bhs ahgckd ti i`thge okmbhegmhc cgmkesks. Ia

    8=

    MCH]] HMTGIE MIO^CHGET0447=

  • 8/19/2019 Rhapsody Class Action Filing (DMN)

    14/18

    8

    0

    =

    4

    ;

    1

    6

    2

    7

    8>

    88

    80

    8=

    84

    8;

    81

    86

    82

    87

    0>

    08

    00

    0=

    04

    0;

    01

    06

    02

    miursk, pitketghc mchss oko`krs ohy hcsi, hed hcrkhdy bhvk, skca-gdketgay. Tbk

    Mchss Oko`krs mhe hcsi `k rkhdgcy cimhtkd hed eitgagkd ia tbgs hmtgie.

    =2. Tbk mchgos ia ^chgetgaas hrk typgmhc ia tbk mchgos ia tbk oko`krs ia tbk

    mchss, hed tbkgr getkrksts hrk miesgstket wgtb hed eit hethfiegstgm ti tbisk ia tbk

    itbkr mchss oko`krs tbky skkl ti rkprksket. ^chgetgaas bicds tbk rgfbts ti

    ouctgpck ousgmhc miopisgtgies wbgmb Pbhpsidy bhs rkpridumkd hed/ir

    dgstrg`utkd wgtbiut cgmkesk hed wgtbiut privgdgef eitgagmhtgie ti ^chgetgaas.

    ^chgetgaas hed hcc oko`krs ia tbk mchss bhvk susthgekd hmtuhc pkmueghry ciss hed

    ahmk grrkphrh`ck bhro hrgsgef iut ia Pbhpsidy‗s mietgeukd geargefkoket hs

    miopchgekd ia bkrkge.

    =7. ^chgetgaas bhvk ei getkrksts tbht hrk hdvkrsk ti, ir wbgmb mieacgmt wgtb,

    tbk getkrksts ia tbk h`sket oko`krs ia tbk mchss hed hrk h`ck ti ahgrcy hed

    hdkquhtkcy rkprksket hed pritkmt tbk getkrksts ia sumb h mchss. ^chgetgaas bhvk

    rhgskd h vgh`ck mipyrgfbt geargefkoket mchgo ia tbk typk rkhsieh`cy kxpkmtkd ti

     `k rhgskd `y oko`krs ia tbk mchss, hed wgcc vgfiriuscy pursuk tbisk mchgos. Ga

    ekmksshry, ^chgetgaas ohy skkl ckhvk ia tbk Miurt ti hoked tbgs Miopchget ti

    gemcudk hddgtgiehc mchss rkprkskethtgvks ti rkprksket tbk mchss ir hddgtgiehc

    mchgos hs ohy `k hppriprghtk. ^chgetgaas hrk rkprksketkd `y kxpkrgkemkd,

    quhcgagkd hed miopktket miueskc wbi hrk mioogttkd ti priskmutgef tbgs hmtgie.

    4>. Miooie qukstgies ia ahmt hed chw kxgst hs ti hcc oko`krs ia tbk mchss

    tbht prkdiogehtk ivkr hey qukstgies haakmtgef iecy gedgvgduhc oko`krs ia tbk

    mchss. Tbksk miooie ckfhc hed ahmtuhc qukstgies, wbgmb di eit vhry ario

    mchss oko`kr ti mchss oko`kr, hed wbgmb ohy `k dktkrogekd wgtbiut

    rkakrkemk ti tbk gedgvgduhc mgrmuosthemks ia hey mchss oko`kr gemcudk, wgtbiutcgogthtgie, tbk aicciwgef:

    (H) Vbktbkr Pbhpsidy kefhfkd ge tbk prhmtgmk ia rkpridumgef,

    dgstrg`utgef ir itbkrwgsk kxpcigtgef rkfgstkrkd ousgmhc

    miopisgtgies wgtbiut agrst i`thgegef h okmbhegmhc cgmkesk<

    84

    MCH]] HMTGIE MIO^CHGET0447=

  • 8/19/2019 Rhapsody Class Action Filing (DMN)

    15/18

    8

    0

    =

    4

    ;

    1

    6

    2

    7

    8>

    88

    80

    8=

    84

    8;

    81

    86

    82

    87

    0>

    08

    00

    0=

    04

    0;

    01

    06

    02

    (@) Vbktbkr Pbhpsidy ahgckd ti miopcy wgtb tbk miopucsiry

    cgmkesgef rkqugrkokets ia tbk Mipyrgfbt Hmt, 86 [.].M. § 88;,

    gemcudgef agcgef ia Eitgmks ia Getket wgtb tbk [.]. Mipyrgfbt

    Iaagmk<

    (M) Vbktbkr Pbhpsidy‗s rkpridumtgie, dgstrg`utgie ir itbkr

    kxpcigthtgie ia rkfgstkrkd ousgmhc miopisgtgies wgtbiut agrst

    i`thgegef h okmbhegmhc cgmkesk miestgtutks h vgichtgie ia tbk

    Mipyrgfbt Hmt, 86 [.].M. §§ 8>1 hed ;>8<

    (D) Vbktbkr Pbhpsidy‗s uecgmkeskd rkpridumtgie, dgstrg`utgie ir

    itbkr kxpcigthtgie ia rkfgstkrkd ousgmhc miopisgtgies whs diek

    wgccauccy, tbkrk`y ketgtcgef tbk oko`krs ia tbk mchss ti gemrkhskd

    sthtutiry dhohfks< hed

    (K) Tbk `hsgs hed oktbid air dktkrogegef hed mioputgef dhohfks.

    48. H mchss hmtgie gs supkrgir ti itbkr hvhgch`ck oktbids air tbk ahgr hed

    kaagmgket hdjudgmhtgie ia tbgs mietrivkrsy sgemk gedgvgduhc cgtgfhtgie ia tbk

    mchgos ia hcc mchss oko`krs gs goprhmtgmh`ck. Tbk mchgos ia tbk gedgvgduhc

    oko`krs ia tbk mchss ohy rhefk ario sohcckr suos ti chrfkr suos, dkpkedgef

    upie tbk euo`kr ia Virls geargefkd. Tbus, air tbisk mchss oko`krs wgtb

    akwkr Virls geargefkd, tbk kxpkesk hed `urdke ia gedgvgduhc cgtgfhtgie ohy eit

     justgay pursugef tbk mchgos gedgvgduhccy. Hed kvke ga kvkry oko`kr ia tbk mchss

    miucd haaird ti pursuk gedgvgduhc cgtgfhtgie—wbgmb gs bgfbcy uecglkcy ge tbk

    gedkpkedket hrtgst mioouegty—tbk miurt systko miucd eit. Gt wiucd `k

    ueducy `urdkesiok ti tbk miurts ge wbgmb gedgvgduhc cgtgfhtgie ia euokrius

    mhsks wiucd primkkd. Gedgvgduhcgzkd cgtgfhtgie wiucd hcsi prksket tbk pitketghcair vhrygef, mietrhdgmtiry, ir gemiesgstket judfokets hed wiucd ohfegay tbk

    dkchy hed kxpkesk ti hcc phrtgks hed ti tbk miurt systko rksuctgef ario ouctgpck

    trghcs ia tbk shok ahmtuhc gssuks. Ie tbk itbkr bhed, tbk ohgetkehemk ia tbgs

    hmtgie hs h mchss hmtgie prkskets akw ohehfkoket dgaagmuctgks, mieskrvks tbk

    8;

    MCH]] HMTGIE MIO^CHGET0447=

  • 8/19/2019 Rhapsody Class Action Filing (DMN)

    16/18

    8

    0

    =

    4

    ;

    1

    6

    2

    7

    8>

    88

    80

    8=

    84

    8;

    81

    86

    82

    87

    0>

    08

    00

    0=

    04

    0;

    01

    06

    02

    rksiurmks ia tbk phrtgks hed ia tbk miurt systko, hed pritkmts tbk rgfbts ia khmb

    oko`kr ia tbk mchss. ^chgetgaas hetgmgphtk ei dgaagmucty ge tbk ohehfkoket ia

    tbgs hmtgie hs h mchss hmtgie.

    MI[ET IEK

    (Dgrkmt Mipyrgfbt Geargefkoket - 86 [.].M. §§ 8>1 hed ;>8) 

    40. ^chgetgaas hed tbk Mchss rkhcckfk hed gemirpirhtk `y rkakrkemk khmb hed

    kvkry hcckfhtgie miethgekd ge phrhfrhpbs 8 tbriufb YY ia tbk Miopchget wgtb

    tbk shok airmk hed kaakmt hs ga auccy skt air tbht ckeftb bkrkge.

    4=. Pbhpsidy, wgtbiut cgmkesk ario ^chgetgaas hed tbk Mchss, bhs ohdk

    uehutbirgzkd rkpridumtgies hed/ir kefhfkd ge uehutbirgzkd dgstrg`utgie ia

    ^chgetgaas‗ hed Mchss Oko`krs‗ mipyrgfbtkd ousgmhc miopisgtgies, gemcudgef

     `ut eit cgogtkd ti, tbisk miopisgtgies cgstkd ge phrhfrhpb 07, gearh. ]umb

    miedumt miestgtutks geargefkoket ia ^chgetgaas‗ hed Mchss Oko`krs‗ rkfgstkrkd

    mipyrgfbts ge vgichtgie ia 86 [.].M. §§ 8>1, kt skq. hed ;>8.

    44. Tbk geargefkoket ia ^chgetgaas‗ hed Mchss Oko`krs‗ rgfbts ge khmb ia

    tbkgr mipyrgfbtkd miopisgtgies miestgtutks h skphrhtk hed dgstgemt hmt ia

    geargefkoket.

    4;. Pbhpsidy‗s miedumt gs wgccauc, getketgiehc, purpiskauc, ge dgsrkfhrd ia

    hed gedgaakrket ti tbk rgfbts ia ^chgetgaas hed Mchss Oko`krs.

    41. Hs h dgrkmt hed prixgohtk rksuct ia Pbhpsidy‗s wgccauc hed geargefgef

    miedumt, ^chgetgaas hed Mchss Oko`krs hrk ketgtckd ti tbk ohxgouo sthtutiry

    dhohfks ir ti tbkgr hmtuhc dhohfks hed Dkakedhet‗s priagts, wbgmbkvkr hrk

    bgfbkr, hfhgest Dkakedhet pursuhet ti 86 [.].M. § ;>4(`). ^chgetgaas hed Mchss

    Oko`krs wgcc kckmt wbktbkr ir eit ti skkl sthtutiry dhohfks prgir ti agehc judfoket. ^chgetgaas hed Mchss Oko`krs hrk hcsi ketgtckd ti httireky‗s akks hed

    mists `y vgrtuk ia Dkakedhet‗s geargefkoket pursuhet ti 86 [.].M. § ;>;.

    46. Dkakedhet‗s hmts bhvk mhuskd hed wgcc mietgeuk ti mhusk grrkphrh`ck

    bhro hed gejury ti ^chgetgaas hed Mchss Oko`krs air wbgmb tbky bhvk ei

    81

    MCH]] HMTGIE MIO^CHGET0447=

  • 8/19/2019 Rhapsody Class Action Filing (DMN)

    17/18

    8

    0

    =

    4

    ;

    1

    6

    2

    7

    8>

    88

    80

    8=

    84

    8;

    81

    86

    82

    87

    0>

    08

    00

    0=

    04

    0;

    01

    06

    02

    hdkquhtk rkokdy ht chw. ^ursuhet ti 86 [.].M. § ;>0, ^chgetgaas hed Mchss

    Oko`krs hrk tbkrkairk ketgtckd h prkcgogehry gejuemtgie hed h pkroheket

    gejuemtgie pribg`gtgef geargefkoket ia ^chgetgaas‗ hed Mchss Oko`krs‗

    mipyrgfbts hed kxmcusgvk rgfbts uedkr [egtkd ]thtks chw.

    ^PHWKP AIP PKCGKA

    VBKPKAIPK, ^chgetgaas, ie `kbhca ia tbkoskcvks hed ie `kbhca ia hcc itbkr

     pkrsies sgogchrcy sgtuhtkd, rkspkmtauccy prhy air rkcgka hfhgest Dkakedhet hs aicciws:

    8. Mkrtgay tbgs ohttkr hs h mchss hmtgie<

    0. Ketkr he irdkr hppigetgef ^chgetgaas hs mchss rkprkskethtgvks hed

    ^chgetgaas‗ miueskc hs mchss miueskc<

    =. Ketkr judfoket ge ahvir ia ^chgetgaas hed tbk Mchss<

    4. Ketkr gejuemtgvk hed/ir dkmchrhtiry rkcgka hs gs ekmksshry ti pritkmt tbk

    getkrksts ia ^chgetgaas hed tbk Mchss (86 [.].M. § ;>0), gemcudgef kejigegef

    Dkakedhet ario mietgeukd mipyrgfbt geargefkoket hed vgichtgies ia tbk

    rkckvhet privgsgies ia tbk Mipyrgfbt Hmt<

    ;. Ketkr gejuemtgvk rkcgka tbht rkqugrks Pbhpsidy ti phy air tbk skrvgmks ia h

    tbgrd phrty hudgtir ti gdketgay tbk iwekrs ia Virls rkpridumkd hed/ir

    dgstrg`utkd `y Pbhpsidy dkspgtk Pbhpsidy‗s ahgcurk ti agrst i`thge h okmbhegmhc

    cgmkesk prgir ti rkpridumgef hed/ir dgstrg`utgef tbk Virls, hed aurtbkr

    rkqugrgef Pbhpsidy ti rkoivk hcc sumb Virls ario gts skrvgmks uetgc gt i`thges

     pripkr cgmkesks air tbko<

    1. Hwhrd miopkeshtiry dhohfks ti ĉhgetgaas hed tbk Mchss ge he hoiuet ti

     `k hsmkrthgekd ht trghc<

    6. Hwhrd sthtutiry dhohfks ti ^chgetgaas hed tbk Mchss hmmirdgef ti priia,gemcudgef `ut eit cgogtkd ti hcc pkehctgks hutbirgzkd `y tbk Mipyrgfbt Hmt (86

    [.].M. §§ ;>4(m)(8), ;>4(m)(0))<

    2. Hwhrd rkhsieh`ck httirekys‗ akks hed mists (86 [.].M. § ;>;)<

    86

    MCH]] HMTGIE MIO^CHGET0447=

  • 8/19/2019 Rhapsody Class Action Filing (DMN)

    18/18

    8

    0

    =

    4

    ;

    1

    6

    2

    7

    8>

    88

    80

    8=

    84

    8;

    81

    86

    82

    87

    0>

    08

    00

    0=

    04

    0;

    01

    06

    02

    7. Hwhrd ^chgetgaas hed tbk Mchss prk- hed pist-judfoket getkrkst ti tbk

    kxtket hcciwh`ck< hed

    8>. Hwhrd sumb itbkr hed aurtbkr rkcgka tbht tbk Miurt ohy dkko just hed

     pripkr.

    Dhtkd: Ohrmb 6, 0>81 OGMBKCOHE & PI@GE]IE CC^

    @y

    ]heaird C. OgmbkcoheOieh Z. BheehDhvgd M. Ckk

    Gcsk M. ]mittOkchegk Ehthsbh Biwhrd

     Httirekys air ^chgetgaas hed ^ripiskdMchss

     82