Another U.S. Judge Blasts Prenda Law, Orders Reimbursement

MINNEAPOLIS — In a scolding opinion yesterday, U.S. Magistrate Judge Franklin Noel ordered Prenda Law and porn copyright holder AF Holding to reimburse five defendants the entire $3,500 to $6,000 settlements they paid, plus their attorney's fees and costs.

"In short, the court concludes that AF Holdings used fraudulent copyright-assignment agreements, attached to each complaint in all five of the instant cases, in order to expedite discovery and leverage settlement agreements," the federal magistrate judge in Minnesota said.

Noel also indicated that he expects to ask the U.S. Attorney for Minnesota, the state attorney general and attorney disciplinary authorities to investigate what he describes as a fraud on the court.

Through the past several years, Prenda Law and copyright holders have earned millions in legal settlements as they exacted payments from thousands of defendants accused of illegally sharing porn through torrents.

Noel's sharp order follows a 2½- hour hearing conducted in late September when he tried to discern who really signed the copyright documents attached to AF Holdings' content.   

Prenda Law had sued defendants on behalf of shell porn companies such as AF Holdings and Ingenuity 13, whose copyright assignments are now alleged to be have been fraudulent.

Some of the documents were signed by Alan Cooper, a former caretaker of a cabin for Steele — the Chicago litigator who founded Prenda Law. Cooper, however, denied signing the documents and told that to Noel at the hearing.

Noel, according to his ruling, found Cooper's testimony convincing enough to slam Prenda Law and AF Holdings.

"The copyright-assignment agreements ... to each complaint in each of these five cases are not what they purport to be. Alan Cooper denies signing either agreement and also denies giving anyone else the authority to sign them on his behalf," Noel ruled. "AF Holdings failed to produce any credible evidence that the assignments were authentic.

"The court has been the victim of a fraud perpetrated by AF Holdings LLC. The court concludes that the appropriate remedy for this fraud is to require AF Holdings to return all of the settlement money it received from all of the defendants in these cases, and to pay all costs and fees (including attorneys fees) incurred by the defendants.

"After all settlement payments are returned and other fees are paid, all five cases should be dismissed on the merits, with prejudice."

Noel's ruling follows other adverse rulings for Prenda Law, which disbanded in July after posting more than $237,000 in bonds in a case adjudicated in Los Angeles.

In that case, Prenda Law was originally hit with $81,000 in sanctions after U.S. District Judge Otis Wright said that the firm "outmaneuvered the legal system." (Prenda Law was sanctioned even further for missing bond payment deadlines.)

Wright ordered the Prenda Law attorneys — Steele, as well as Paul Hansmeier, Paul Duffy and Brett Gibbs —  to pay legal fees and penalties in a case they filed against an alleged illegal downloader on behalf of porn copyright holder Ingenuity 13.

Wright, calling the attorney group a "porn trolling collective" in his ruling, said that Prenda Law "discovered the nexus of antiquated copyright laws, paralyzing social stigma, and unaffordable defense costs." 

"And they exploit this anomaly by accusing individuals of illegally downloading a single pornographic video," Wright said in his ruling. "Then they offer to settle — for a sum calculated to be just below the cost of a bare-bones defense."

In the Los Angeles case, Wright made sanctions and referred the firm's attorneys to state and federal bar disciplinary panels, as well as federal prosecutors and the IRS.

Wright also ordered the notification of “all judges before whom these attorneys have pending cases” over similar allegations of fraud involving Cooper's identity.

One of those judge's made aware was Noel in Minnesota, who ruled against Prenda Law yesterday.

Morgan Pietz, the attorney representing the John Doe in front of Wright in Los Angeles, commented on yesterday's decision by Noel, calling it "an important step forward in holding Prenda et al. to account."

"The concept of having to refund settlement money to John Doe defendants is an important precedent that other plaintiffs engaged in industrial-scale end user litigation should probably note with concern," Pietz told XBIZ.

"For the adult industry, which depends on federal court enforcement of First Amendment rights to keep everyone out of jail, the idea of filing thousands of fraudulent or abusive lawsuits in federal court, would appear to be a lousy long term strategy. I appreciate that piracy is a problem, but abusive end-user litigation is not the solution."

View Noel's ruling

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

2026 TEAs Shine Bright in Celebration and Solidarity

The industry’s trans adult performers, creators and creatives came together Sunday night at the historic Avalon nightclub in Hollywood for an evening of well-deserved celebration: the 2026 Trans Erotica Awards.

Kansas Plaintiff Drops Chaturbate AV Suit, Revamps SuperPorn Complaint

The plaintiff in a lawsuit alleging that cam platform Chaturbate violated Kansas’ age verification law has voluntarily dismissed that action, while retooling a similar complaint against adult site SuperPorn.

Cherie DeVille Launches New Coffee Brand

Multi-XMAs winner Cherie DeVille has launched her new product line, Coffee MILF.

New Creator Networking Platform 'CollabGPS' Launches

CollabGPS, a new creator networking platform designed to facilitate safe collaboration, has officially launched.

Nicole Kitt Leads Return of TeamSkeet Series 'Black Valley Girls'

Nicole Kitt stars in the relaunch of TeamSkeet’s series “Black Valley Girls.”

Kyaa Chimera Makes Her Girlsway Debut

Recently crowned XMAs Fetish Creator of the Year Kyaa Chimera makes her Girlsway debut alongside Roxie Sinner in "Free-Use Homework Hang."

Lilly Bell Stars in Latest From Blacked Raw

Multi-XMAs winner Lilly Bell stars with Anton Harden in the latest release from Vixen Media Group studio imprint Blacked Raw.

Sabien DeMonia Performs Her 1st Evil Angel DAP

Reigning Euro XMAs MILF Performer of the Year Sabien DeMonia performs her first Evil Angel DAP alongside Jesus Reyes and Little Maly.

Chaturbate Launches Year-Long 15th Anniversary Campaign

Chaturbate has launched "CB15," a year-long campaign to celebrate the company's 15th anniversary.

At Last: Jennifer White Reflects on a Breakthrough Year and XMAs Gold

Jennifer White has reached the top of the mountain. Not only did the veteran performer’s recent showcase, “Hollywood Whore,” win Best Performer Showcase at the 2026 XMAs, but White herself scored the ultimate honor by being crowned Female Performer of the Year.

Show More