technically, it's not legal, but most companies don't actually bother looking at places, nor do they see it as profitable to actually go after it. There's that whole 24 hours to test then delete thing, but that's also not actually true. Usually, download sites will just take off the "copyright infringing content" when either japanese or american companies ask, but usually only american companies complain because the japanese laws usually don't extend to american shores. Remember it's only illegal if you get caught. otherwise, keep on trucking.
It is perfectly legal for a website to host music available for download, publishing companies have the right to remove these websites, if they have the full copyright ownership, because the song belongs to this company, and they can do what they wish with it and/or any website that has those songs, but as long as that disclaimer (if you don't own these CD's don't download them!) is there, Even though we most likely don't own any of these CD's, with that disclaimer I believe the website is sue-proof.
I doubt of the hundreds, if not thousands of users on this site can all be tracked and sued for downloading music illegally, when it's too much trouble, and they could easily just shut down the source and be done with it.