NEWS
Warner Music Group reported on Friday soaring digital music sales, even as the company continues to lose money and faces numerous lawsuits related to alleged price fixing of music downloads.
In documents filed with the Securities and Exchange Commission (SEC), Warner Music said the company has been named in 14 class-action lawsuits, most of which allege a "conspiracy among record companies to fix prices for downloads".
Warner Music said in its quarterly statement filed on Friday: "The company intends to defend against these lawsuits vigorously."
The accusations come three months after Eliott Spitzer, New York's attorney general, began investigating whether several of the big music companies agreed to fix download prices. Such an agreement would violate antitrust laws.
Warner Music reported in its filing that it expects the 14 lawsuits to be consolidated into one.
Meanwhile, sales from digital-music downloads in the quarter ended 31 March, were $90m, equalling 11 per cent of the company's total revenue and almost tripling sales from the same period last year.
For the quarter, Warner suffered a net loss of $7m, or 5 cents per share, compared with a profit in the year-ago period of $4m, according to the company's SEC filing.
Greg Sandoval writes for CNET News.com
