Home > News > Rascal Video Levels Breach-of-Contract Charge Against Topco • Bookmark   • Newsletters   • Register Search Options


Rascal Video Levels Breach-of-Contract Charge Against Topco

Rascal Video Levels Breach-of-Contract Charge Against Topco
Get XBIZ News
XBIZ Research
Will virtual reality boost the paysite market?
Yes, it will soon
Yes, but in a few years
Out of 179 votes. Results based on votes submitted by members of XBIZ.net social network.
Nov 16, 2012 4:00 PM PST    Text size: 

LOS ANGELES — Rascal Video on Tuesday filed suit against Topco Sales' past and current operators, claiming the sex toy company breached its contract over unpaid royalties and continues to sell its products.

The federal lawsuit has its roots in Topco's move in July to make a general assignment for the benefit of creditors to pay off bills to avert Chapter 7 bankruptcy.

At the time Topco officials said all “inventory, equipment and means of production, packaging and shipping, as well as all trademarks, unexpired licenses and other intellectual property, including the Topco name and other business and brand names” were sold to World Sexy Media Investment LLC (WSMI).

In the suit filed this week, Los Angeles-based Rascal Video  — which owns and operates Channel 1 Releasing, the Rascal Video brand and Live and Raw, as well as the Chi Chi LaRue trade name — said that after it learned that Topco paid off creditors through general assignment, it also found out that  WSMI "is owned, at least in part, by the owners of the old Topco."

Rascal Video that it didn't receive formal notice of the assignment and never received a final statement of sales and inventory as specified in its contract with Chatsworth, Calif.-based Topco, which was founded in 1973.

Because of the deficiencies, Rascal Video deemed the contract terminated. But now, according to the suit, WSMI plans on continuing with the deal, even though Rascal Video declared it a goner.

"[WSMI] has announced that it intends and has continued to manufacture and distribute, distribute, sell and market adult products internationally under the Rascal marks despite termination of the license agreement," Rascal Video said in the suit.

Further, Rascal Video alleges in the suit that it lost leverage in collecting funds it was owed as a result of Topco's decision to choose general assignment over Chapter 7 and allowing an assignee to sell off the company to its old operators.

"New Topco conspired with and aided and abetted old Topco's fraud in order to obtain the assets of old Topco at less than their fair value in order to defraud and hinder the creditors of old Topco," the suit said.

Past and current Topco CEO Scott Tucker, who declined comment to XBIZ over the suit, has denied any obligation to pay Rascal Video's royalties prior to the general assignment, according to the suit.

As a result, Rascal Video has asked the court to void general assignment and also has requested that the new Topco and Tucker be restrained from further transfers of old Topco assets. It also has asked for a receiver be assigned to manage old Topco assets.

In addition, Rascal Video has asked for an accounting identifying all sales and inventory of its products manufactured and distributed by the olds and new Topco.

The complaint, which asks for unspecified and enhanced damages, makes additional charges that both the past and current Topco was distributing goods under the Dirk Yates mark without permission.

Rascal Video also asks for a declaration stating that its original Topco deal is not renewable because of an earlier default on payment obligations and an order requiring Topco's present ownership to destroy Rascal Video's body molds used in manufacturing sex toys.

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 !


How Advertisers Use Your Devices to Sell You Stuff

The paranoia has reached an all-time high. Now some people actually believe that their microwave ovens are spying on them — despite the fact they don’t have any listening devices or cameras.... More »

As Mobile Grows, So Does Need to Push Sales

The number of consumers browsing and buying online will reach 270 million by 2020, driven largely by activity on mobile devices, according to Forrester. Business is booming and the fact that most purchases... More »

With AI, Routine Tasks Start Fading Away

I just turned 42. The list of things I may never do again is growing fast. I no longer dream that I will become an Olympian in any sport except archery or horseback riding. The oldest Olympians in those... More »
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.

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.
Subscribe to XBIZ World magazine, the industry's leading e-commerce trade publication, delivering in-depth coverage of the online, mobile and ancillary digital markets.


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!