The once-promising Grooveshark seems to be sinking further, with sources now pointing to additional layoffs in June. The first source emailed Digital Music News anonymously, unhappily pointing to an unspecified number of layoffs and an 18 percent forced pay-cut for many surviving employees.
We did not receive a response from Grooveshark CEO Sam Tarantino on the matter, but a second ‘insider’ source has very viciously slammed the company on Pastebin (see below) while reporting similar information. The Pastebin source, who claims to be an active employee, questioned the layoffs in light of a costly legal strategy spearheaded by John J. Rosenberg of Rosenberg & Giger, one that included subpoena litigation against yours truly, Digital Music News.
Rosenberg, alongside Lindsay Lohan attorney Ed McPherson of McPherson Rane, spent roughly two years unsuccessfully trying to force Digital Music News to open its servers in the hopes of identifying an anonymous commenter (much like the one below). In May of this year, a panel of California Appeals Court judges decisively ruled in Digital Music News’ favor, while sharply questioning the substance of the subpoena.
Elsewhere, Grooveshark and Rosenberg have been struggling to defend against a massive ‘legal jihad’ by the major recording labels.