Tagged gets nailed for being overly viral/spammy. They stepped over the line.

This very virulent form of spam is the online equivalent of breaking into a home, stealing address books, and sending phony mail to all of an individual's personal contacts.
NY Attorney General Andrew Cuomo, talking about tagged.com, via independent.co.uk

Looks like a lawsuit and fines are in order.

No tears from me here. Tagged went over the line of decency when it started directly misleading users into spamming all their address book contacts.

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Totally agree. They are getting what they deserve. Hopefully, this helps keep other sites on the side of ethics.