The basic deal is that you get a free Rio (you pay some S&H) when you agree to buy a couple of audio books a month for a year. They send the Rio at the start and bill you month to month as you go.
Obviously if they are outta bizness they can't enforce the year contract.
Monday, the CEO and 40% of the workforce "decided to pursue other opportunies" [I suppose like sleeping late and walking around in their underwear mumbling "Damn Audible!"]
The same day, the ambulance chasers noticed the siren and lights and filed a class action suit against them: