What's Happening?
A lawsuit filed in federal court in Los Angeles accuses former CEO Michael Mumbauer of That’s No Moon Entertainment of hijacking the company's domain name, causing over $1 million in damages, and attempting to sell it for $6,666,666. Mumbauer, who was terminated in 2022, allegedly took control of the domain ThatsNoMoon.com, disrupting the company's operations by disabling employee access to emails and redirecting the site to a Swiss travel page. The lawsuit claims Mumbauer's actions were part of a harassment campaign following his dismissal. The company, which was founded in 2020, had purchased multiple domains under the 'That’s No Moon' name, but Mumbauer registered them in his own name and did not transfer control to the company. The lawsuit also
alleges trademark infringement and cybersquatting.
Why It's Important?
The case highlights significant issues in corporate governance and cybersecurity, particularly the risks associated with domain management and intellectual property. The alleged actions by Mumbauer could have severe implications for That’s No Moon Entertainment, affecting its reputation, operations, and financial stability. The lawsuit underscores the importance of securing digital assets and the potential vulnerabilities companies face when former executives retain control over critical infrastructure. This case could set a precedent for how similar disputes are handled legally, emphasizing the need for clear policies and agreements regarding domain ownership and control.
What's Next?
The lawsuit will proceed in federal court, where That’s No Moon Entertainment seeks to regain control of its domains and secure damages for the alleged losses. The outcome could influence how companies manage domain registrations and protect against internal threats. If the court rules in favor of That’s No Moon, it may lead to stricter regulations and practices regarding domain ownership and cybersecurity measures within the industry. The case may also prompt other companies to review their digital asset management strategies to prevent similar incidents.
