As we wrote earlier this month, eUniverse Intermix had announced had it was being investigated by Elliot Spitzer.

Today from Spitzer’s office:

Attorney General Eliot Spitzer today sued one of the nation’s leading internet marketing companies, alleging that the firm was the source of “spyware” and “adware” that has been secretly installed on millions of home computers. The suit against Los Angeles-based Intermix Media, Inc. is the most sweeping case to date involving programs that redirect web addresses, add toolbars and deliver pop-up ads.

BroadbandReports thread.

ZDNET here.