According to The Verge, via The Hollywood Reporter, file-hosting website Megaupload has dropped Universal Music Group from a lawsuit it declared after the major label removed a video from YouTube, featuring Kanye West, Diddy and others, that endorsed the service. It is believed that Megaupload's lawyers are looking to continue the lawsuit with other parties that had a direct role in removing the video, with some speculating that Google may be a potential target.
It's noted that Universal was dismissed from the case "without prejudice," meaning Megaupload could reinstate its original claim against label if it wanted to. But, also as The Verge points out, it's not likely that will end up happening: Megaupload was recently shut down, and founder Kim 'Dotcom' Schmitz and several others were indicted on criminal charges files by the United States Department of Justice. On top of all of this, the hacker group known as Anonymous retaliated by shutting down the websites for the MPAA, RIAA, Justice.org (part of the DOJ) and Universal Music. [TheVerge]