Donuts is suing ICANN for a minimum of $22.5 million over its failed bid for .web. In their claim in the US District Court, Central District of California, Donuts claim ICANN “willfully and intentionally committed wrongful acts” over Verisign’s financing of Nu Dot Co’s successful $135 million bid at auction for the new generic Top Level Domain.
The figure comes from the approximate amount each of the six losing applicants would have received if the contention set had been resolved at a private auction, had it gone for the same amount.
Donuts claim that ICANN” “intentionally failed to abide by its contractual obligations to conduct a full and open investigation into Nu Dot Co’s admission because it was in ICANN’s interest that the .web contention set be resolved by way of ICANN auction.”
“ICANN deprived Donuts and the other applicants for the .web gTLD of the right to compete for .web in accordance with established ICANN policy. Court intervention is necessary to ensure ICANN’s compliance with its own accountability and transparency mechanisms.”
The lawsuit has been filed (and revised) for the second time, originally filed within a day of ICANN denying Donuts, and others, request to delay the auction.
For more detail on the lawsuit, see the Domain Incite report at: