The talent scout Dick Rowe, who (frankly, alongside many others, including HMV) turned down the Beatles has long been credited with committing the music industry's biggest blunder. But a recent list of the industries gaffes considers the inability to harness the web as the new top-spot. Rather than work with file-sharing services like Napster, they sued the company, and a number of individual music fans. It cost them (and their cheerleaders, like Metallica) a lot of goodwill and they've yet to recoup their legal expenses while having done nothing to deter file-sharing.
Other lawsuits on the list include Geffen Records at number eleven, for suing Neil Young in the eighties for recording uncharacteristic music with no chance of commercial success (the electronic Trans and the rockabilly Everybody's Rockin'). Geffen also take the next spot, for sinking thirteen million dollars into Guns N Roses' Chinese Democracy, an album that began production more than fourteen years ago and is still not slated for release.
The full story is here.