Basically, the United States has very strict rules about notifying people of lawsuits and how long you have to do so an it appears that they screwed up service on the actual business entity Megaupload.United States district court judge Liam O'Grady said he didn't know if "we are ever going to have a trial in this matter" after being told Dotcom's file-sharing company had never been formally served with criminal papers by the US.
The NZ News article has the bare bones and Ernesto at Torrent freak has more info here:
If this issue indeed prevents Megaupload from being tried in the US, it would be a blunder of epic proportions. And it is not the first â€śproceduralâ€ť mistake either.
Last month the New Zealand High Court declared the order used to seize Dotcomâ€™s property â€śnull and voidâ€ť after it was discovered that the police had acted under a court order that should have never been granted.
The error dates back to January when the police applied for the order granting them permission to seize Dotcomâ€™s property. Rather than applying for an interim restraining order, the Police Commissioner applied for a foreign restraining order instead.
The exact ramifications of the failure to serve will become apparent in the near future.