Home > News > Babenet Files $1M Suit Against AVN • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

Babenet Files $1M Suit Against AVN

Babenet Files $1M Suit Against AVN
Get XBIZ News
Nov 13, 2009 3:45 PM PST    Text size: 
CHATSWORTH, Calif. — Babenet has filed suit against co-founder and chairman Paul Fishbein and AVN at Los Angeles Superior Court, claiming fraud and breach of contract, among other charges.

Babenet, which at one time was a collection of membership sites and TGPs, said it’s owed an amount exceeding $1 million.

In 1999, Babenet made a $300,000, five-year loan to Fishbein’s AVN to help jumpstart the Internext trade show, then known as IA 2000.

As part of the agreement, Babenet was to receive eight percent of the gross revenue collected from Internext.

Babenet also was to receive no less than the “favored nations pricing” for exhibitor space at the show and two full pages of advertising in the Internext showguide.

According to court documents, the suit agains Fishbein and AVN got its legs during an April 2008 lunch.

At the lunch, it became clear to three Babenet execs— Jack Gallagher, Rob Gould and Andy Garroni — that their deal had gone south.

Babenet contends that the funds they received from AVN were “substantially less” than eight percent of the gross receipts and that AVN “secretly” provided free exhibition space to other companies at the same time it was charging Babenet up to $25,000 per show for space.

Babenet also said AVN and Fishbein had “induced exhibitors and attendees of the shows to migrate to other adult trade shows wholly owned by AVN in order to avoid paying Babenet its eight percent.”

The suit further contends that AVN and Fishbein never accounted to Babenet the gross revenue associated with the show, including commissions, affiliate marketing, trade or barter and revenue from a spin-off show.

Babenet’s claim seeks accounting of Internext’s finances for an undetermined number of years. It also seeks to have all of Internext’s funds held by a trust until the court can adjudicate the case.

The contractual fraud case has a status hearing March 2 at the downtown courthouse.

Fishbein referred questions to his attorney, Paul Cambria, who was unavailable for comment late Friday. XBIZ was unable to reach Babenet attorney Allen Grodsky for comment by post time.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

PROFILES & BIOS

NMG’s Megan Stokes Helps Brands Find New Revenue

NMG Management, which helps adult companies find new ways to increase revenue and brand exposure, has some of the industry’s most prominent studios listed as clients. From MetArt to Holly Randall... More »

Cam World: Chaturbate’s Ramona Flour Cultivates Community

Wreathed in a scarlet mane of silky flames, Ramona Flour is a mesmerizing Renaissance woman, her painterly figure gorgeously inked and her savvy intellect sharpened to a witty edge. Artistry pours forth... More »

Cam World: TheaForYou Hypnotizes Audiences on Stripchat

TheaForYou is an exotic mirage of heavenly dreams, dancing through streaming lights whenever she graces the web-cam on Stripchat. Shimmering golden hair crowns her adorable eyes like solar rays spun from... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Access the latest issues of the industry's leading trade publications in digital form. View online or download for offline viewing.

UPCOMING EVENTS

XBIZ.net Paysite Meetup

May 04 - May 04
Prague, Czech Republic

Eurowebtainment 2017

May 17 - May 20
Majorca, Spain

XBIZ Retreat

May 30 - Jun 03
Miami, Florida

XBIZ Miami 2017

May 30 - Jun 02
Miami, Florida
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!