Liquid Audio has cash but hardly any business; some investors want the cash back:

Liquid Audio, a Redwood City digital distribution company, had only $150,000 in revenue but managed to lose $5.6 million last quarter. Its main asset: A pile of cash. Its stock price Friday was $2.40.

Liquid Audio could pay off its current liabilities and still have $77.3 million left over, or $3.41 a share, largely from the proceeds from its IPO in 1999.

The dispute is over what to do with that cash. Three large shareholders want the management to stop spending money, shut the company down and distribute what's left. The argument is that the business isn't going to work because there are too many competitors who do what Liquid Audio does but do it for free.