Veoh No Mo’

After blowing through $70 million in start-up capital, Southern California-based video site Veoh laid off its remaining staff on Wednesday and plans to file for bankruptcy in the near future, according to Peter Kafka at All Things Digital.

On his website, Veoh founder and CEO Dmitry Shapiro cited a protracted battle legal battle with Universal Music Group as the reason for the company’s decline.

“Two years ago, Universal Music Group (UMG), the largest music company in the world sued Veoh alleging copyright infringement. While we made every effort to convince them that we were not their enemy and had not infringed on their content, they pursued a relentless war of attrition against us in federal court. We eventually prevailed in a decisive summary judgment that has set an important precedent for the entire industry.

Unfortunately, great vision, a passionate team, tens of millions of users, millions in revenues and victory in court were not enough. The distraction of the legal battles, and the challenges of the broader macro-economic climate have led to our Chapter 7 bankruptcy.”

Photo: Veoh founder and CEO Dmitry Shapiro