Yup, bit of a overreaction to shut down the entire label in my opinion. He could have easily handled this without being drastic.
Just stop the Zatreon album sales, delete them from their page and be done with it.
So to be clear and to sum things up: as far as i can tell it looks like Zatreon simply downloaded my demos from a few years ago, put their own vocals on my copyrighted songs and sold it as if it was their work.
The label heard this, liked it and supported Zatreon. We can not be sure if the label knew this was stolen music, im almost certain they did not know this.
Now Zatreon quits, and so does the label.. This is why we cant have nice things.