The lawyers further claim that the government had misled to the court into believing that Megaupload had refused to remove the files.
According to the lawyers, the company retained the files in good faith after the government sought its cooperation in retrieving them without alerting the users of existing warrants and the government’s interests in the files.
Megaupload said the government never asked it to remove the files in the warrant.
“The affidavits in short paint Megaupload as ‘a brazen scofflaw’”, the filing states.
Megaupload said: “The truth as the government well knows is quite different. Megaupload had every reason to retain the files in good faith because the government had sought and obtained Megauploads cooperation in retrieving the files and warned that alerting users if the existence of the warrant and the government's interest in the files could compromise the investigation.”
The company adds that it in turn handed over the accounts of the uploaders of the files to the government as investigations continued only for the government to double-cross it and say its inactiveness showed neglect on the part of the company.
“As of November 18, 2011, thirty-six of the thirty-nine infringing copies of copyrighted motion pictures were still being stored on servers controlled by the Mega Conspiracy,” the government told the court while seeking search warrants.
The company now wants the court to address the emerging facts in the new hearing.
“At this point, it is only appropriate that questions be asked and answered about why the government withheld information from the Court as it did and as to whether it could have otherwise claimed proof of.”
According to Megaupload, the government’s actions destroyed a legitimate business and had its assets frozen without a hearing, with millions of users denied access to their files.