Lawyers for the labels filed papers this week accusing Gorton of moving 90 percent of LimeWire's ownership stake to a new entity that he hopes will be shielded from any damages in the lawsuit.
Reads the filing: Gorton and LimeWire "have engaged in a series of fraudulent actions to frustrate a legal judgment in this case...An asset freeze is required in order to ensure that plaintiffs recover at least some of the monetary compensation they are entitled to."
Despite Wood's ruling last month, the labels said a quick search of LimeWire showed every recording in Billboard's Top 40, Top 40 Country, Top 40 Rock and Top 40 Latin Pop charts were still readily available.
Says LimeWire in response: "We will continue to stay focused on the development of our new music service and ensure that the company continues business as usual."