Webmaster Suit Could Point to iBill Legal Strategy

LOS ANGELES — The parent company of iBill may be banking on a central legal strategy as an unknown number of adult webmasters pursue litigation against it for nonpayment of an untold number of processing reserves.

In a recent complaint brought on by Mana Internet Solutions Inc., which operates IwantU.com, the former third-party processor claims that it can’t be held liable for an alleged breach of an agreement when it never entered into one.

Mana, in a complaint filed in U.S. District Court in Miami, claims it is owed $83,000 plus attorneys fees and interest.

“What it looks like is that iBill is saying, we don’t have the assets but we’re not going to be forced into bankruptcy,” Los Angeles attorney David Steiner, who represents Mana, told XBIZ. “They’re saying that when [Interactive Brand Development] purchased iBill, they only purchased the assets, not the liability.”

IBD claims that since its “not a party to the [Mana] agreement and thus not obligated thereunder, the accounting claim against IBD must be dismissed without prejudice,” said IBD in a motion to dismiss a complaint brought on by Costa Rica-based Mana over a "diversity" between the parties over amount owed.

Miami attorney Joshua E. Young, who represents IBD, did not respond to repeated XBIZ calls for comment on the Mana case. Neither did company executives Gary Spaniak and Steve Markley, who were both unreachable at post time.

iBill’s tangled mess can be pinpointed at its corporate acquisition and woes it incurred with a partnering credit card company.

iBill’s troubles date back from its notification by First Data Merchant Services that it was dropping iBill from its merchant account. iBill tried to secure another merchant account holder and, according to some, failed to tell its clients.

Webmasters were frustrated in their attempts to contact the processor, which until two years ago, was one of the top third-party processors along with CCBill and Paycom.

IBD, formerly known as Care Concepts, purchased iBill and Media Billing LLC from a consortium of companies, including Penthouse, in 2004 for $55 million in an all-stock deal.

Nearly a year earlier, Norcross, Ga.-based InterCept Inc. through its Media Billing LLC division sold iBill to Penthouse for $700,000 in cash, $800,000 in a short-term loan and the assumption of $22 million in debt.

At one point IBD housed nearly 200 employees in a 50,000-square-foot headquarters and data center in Deerfield Beach, Fla. Currently, the company operates in an office-building suite at another location in Deerfield Beach.

“It really is sad and disappointing; many webmasters probably wish that iBill was still doing business,” Steiner said. “But its troubles with First Data were overwhelming.”

Copyright © 2025 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

Ohio AG Threatens Action Against 'Major' Adult Sites Over AV Law

Ohio Attorney General Dave Yost announced today that his office is sending "notice of violation" letters to 19 adult websites for failure to comply with the state's recently enacted age verification law.

Chaturbate Announces 2025 Music Contest Winners

Chaturbate has revealed the winners of its 2025 music competition.

2026 XBIZ Exec Awards Pre-Noms Open With Debut of New 'Impact' Honors

XBIZ is pleased to announce that the pre-nomination period for the 2026 XBIZ Exec Awards, the adult industry’s premier career honor, begins today and runs through Oct. 14.

MYM Rolls Out New Traffic Features for German Creators

German platform MYM has launched a new traffic system for its creators.

Ukrainian Content Creators on Hook for Nearly $10M in Back Taxes

Content creators in Ukraine owe the equivalent of $9.3 million in back taxes, according to the country's State Tax Service.

Updated: European Patent Office Board of Appeals Revokes EIS GmbH Patent

The European Patent Office (EPO) Board of Appeals last week ruled in favor of pleasure brand LELO in the company's ongoing dispute with Satisfyer parent company EIS GmbH.

Eroutique Relaunches Site Through YourPaysitePartner

Eroutique has relaunched its official website through YourPaysitePartner (YPP).

Update: Pornhub Will Not Block Ohio, Despite AV Law

Pornhub parent company Aylo will not block access to its websites in Ohio, despite new state age verification rules that came into effect Sept. 30.

Pineapple Support, Pornhub to Host 'ADHD-Friendly' Support Group

Pineapple Support and Pornhub are hosting a free online support group for performers with ADHD.

Judge Dismisses Some Claims in 'Children of Pornhub' Trafficking Suit

A United States district judge on Friday dismissed some but not all claims against Aylo in a long-running case involving CSAM allegations featured in the influential 2020 New York Times article “The Children of Pornhub.”

Show More