FriendFinder to Pay $15M to Settle Lawsuit
SUNNYVALE, Calif. — FriendFinder Networks Inc. said Thursday that it reached a $15 million settlement agreement with Broadstream Capital Partners Inc.
Broadstream alleged FriendFinder breached a joint venture deal over the purchase of adult and social-networking giant FriendFinder when it was known as Various Inc.
The final agreement announced Thursday provides that FriendFinder pay Broadstream $15 million in three installments through January. Both parties agreed to dismiss the case and arrive at a settlement nearly two years ago.
FriendFinder CEO Marc Bell said that the company is glad to put the litigation with Broadstream to rest and focus more on business growth.
“We are pleased to have settled this matter at the low end of our potential exposure," Bell said. "Now that we have removed the uncertain impact of this litigation we look forward to continuing with our plans for acquisitions and organic growth."
FriendFinder shares traded at $3.93, down 2 cents, on the Nasdaq at post time.