The co-founder of the music video website Veoh confirmed Wednesday night that the company has filed for bankruptcy.

Co-founder Dmitry Shapiro blamed the recession and legal troubles for the bankruptcy. “Unfortunately, a 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.”

The website launched in 2005 but within two years the company was locked in litigation with Universal Music Group. Universal filed a copyright infringement suit against the website which was dismissed in September of 2009. Despite this legal victory, the cost of the litigation caused the website to lay off staffers.

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