Los Angeles-based Intermix Media said that it has reached an agreement in principle with the New York State Attorney General to resolve the pending lawsuit against the firm. Intermix will pay $7.5M over three years to the State of New York, to settle charges that the firm distributed adware and spyware. The company said that it had previously and voluntarily ceased to distribute the software. New York State Attorney General Eliot Spitzer sued Intermix in April with false advertising and deceptive business practices for the inclusion of spyware in some of its software. Intermix did not admit any wrongdoing or liability.