Remember the Media Defender scandal from late last year? They pissed off a lot of people when it was revealed they had lied about their involvement with a download site called Mivii, a site which was set up to trick people into downloading fake torrents that could be used to trap them.

They continued to deny the claims with a bad smelling excuse, and before long some enterprising individuals decided to get to the truth. They hacked the gmail account of a key staff member and made all 700mb worth of his emails available for download. The emails confirmed what everyone had suspected - that Media defender were in fact lying and were behind the entrapment scheme.

Today TorrentFreak is reporting that Media Defender's parent company is facing possible liquidation, resulting from share prices which have continued to plummet ever since the scandal cast them in bad light. From the TorrentFreak article:

"In a SEC filing, the financial damage started to become clear. As a result of the hacking, by November 2007 MediaDefender had lost a massive $825,000 - and growing. Before the email leak, stock was around the $2.25 mark. Three months later in December 2007, things were starting to look bleak as stock plummeted to $0.63."

Read the full article at TorrentFreak.com.