Wrong on a technicality, but not wrong enough. last.fm may not have directly handed anything over, but they unintentionally collaborated in handing it over, and then (I consider this the key point) they attempted to deny that the handover happened.
I agree in a sane conversation, but it just seems like the sort of thing that TC would jump all over.
I believe the phrase he used was "materially correct". Which it was. User data that originated at last.fm was given to the RIAA. It's hard to say the original story was flat wrong.