MediaCAT, the firm behind the threatening letters to those it believed were involved in online piracy, has ceased trading.
The move comes following the resignation of the head of ACS: Law, Andrew Crossley, whose law practice sent the letters on its clients' behalf.
MediaCAT has been strongly criticised for its strong-arm tactics in sending letters to people it believed were involved in downloading or uploading copyrighted material, demanding a fine or threatening a court case.
27 of those ultimatums have resulted in appearances in court, and with a judgement expected on them soon, Crossley took the opportunity during a hearing to confirm the company had ceased trading and delivering his resignation.
The revenue gained from the fines was split 65%/35% in favour of ACS:Law and MediaCAT, with the copyright holders perceived to have been infringed garnering the rest.
However, The Pirate Party has announced it will be seeking legal action against MediaCAT and ACS: Law, after claiming that "hundreds of consumers who allege that letters received from firms alleging copyright infringement amount to harassment".
Crossley said recently about the ordeal: "I have ceased my work... I have been subject to criminal attack. My e-mails have been hacked. I have had death threats and bomb threats."
"It has caused immense hassle to me and my family."
From BBC News
Article continues below