A&M Records, Inc. v. Napster, Inc.
2000 WL 573136 (N.D. Cal. 2000) - full text opinion
In July 2001, a court ordered Napster to shut down its file servers, which prevented further file sharing. Then, on September 24, 2001, Napster settled out of court, agreeing to pay $36 million in damages. Napster tried but failed to introduce a version of their software that was compatible with copyright controls.
In May of 2002, Napster announced it was being bought out by Bertelsmann AG, the German media giant. However, a bankruptcy judge blocked the merger and the company was sold at auction to Roxio, which promptly used the Napster name to rebrand its pre-existing electronic music service, Pressplay.