FriendFinder Claims 9 Sites Not Part of Penthouse Deal

FriendFinder Claims 9 Sites Not Part of Penthouse Deal

DOVER, Del. — FriendFinder Networks Inc. last week filed a lawsuit against Penthouse Global Media Inc. alleging it took control of nine adult websites that were not included in a February purchase agreement.

In a report first filed by Law360, FriendFinder and subsidiary Various Inc. claimed in a suit filed at Delaware’s Chancery Court that they inadvertently transferred ownership of nine websites to Penthouse in April and that for the past several weeks Penthouse has been redirecting visitors to its own sites.

In its brief, FriendFinder said that the company is losing revenue on a daily basis over the loss of control of the sites.

“[Penthouse’s] wrongful exercise of control and dominion over the [FriendFinder] domains is damaging [FriendFinder’s] relationship with its business affiliates, interfering with [FriendFinder’s] contractual relationship with nearly 50,000 registered members and diverting revenue away from [FriendFinder],” according to the complaint.

The suit said that FriendFinder unintentionally gave domain authorization codes to Penthouse as part of a February stock purchase agreement that included 16 affiliate companies that ran more than 1,000 domains.

After the close of the stock deal with Penthouse CEO Kelly Holland, FriendFinder began the process of transferring ownership of the domains to Penthouse.

The suit said that a Penthouse's exec allegedly sent an email in April demanding that the transfer process be sped up; the exec attached a list of 1,117 domains that needed to be transferred by May 2.

FriendFinder, the suit said, did not take notice that nine domains were included in the list that were not part of the purchase agreement with Holland.

FriendFinder claims that on May 26 it corresponded with Penthouse that it received reports that traffic was being diverted from its sites to Penthouse sites.

Shortly thereafter, two of the nine sites — BookOfSex.com and HornyWife.com — were reverted back to FriendFinder and Various’ original sites, but the remaining seven sites still redirect to Penthouse web domains, FriendFinder said.

The suit said that BookOfSex.com and HornyWife.com account for a large portion of FriendFinder revenue through membership fees and advertising revenue.

FriendFinder further said that in the first four days after the transfer of the sites was noticed, it lost out on $7,300 in advertising revenue.

In the suit, FriendFinder is seeking declaratory judgment stating that control of the nine sites belongs to FriendFinder and an injunction requiring Penthouse to return control of the sites to FriendFinder.

FriendFinder also is seeking attorneys fees and the backend costs of reverting control of the sites.

A company rep from FriendFinder declined comment to XBIZ on the suit; Holland did not respond to requests for comment.

Copyright © 2024 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

Sophie Dee, Ricky Johnson to Deliver 'XBIZ Talks' at Miami Conference

XBIZ is pleased to announce that Sophie Dee and Ricky Johnson will each deliver an “XBIZ Talk” at next month’s XBIZ Miami conference

FSC to Host Webinar on Derisking and the Adult Industry

The Free Speech Coalition (FSC) is hosting a webinar on derisking, titled "Derisking: Examining Its Impact on the Adult Industry's Access to Banking," on April 24 at 11 a.m. (PDT).

Democratic Governor Fails to Veto Kansas Age Verification Bill

Kansas’ Democratic governor, Laura Kelly, expressed strong reservations about the state’s version of the age verification bills being sponsored around the country by anti-porn religious conservative activists, but ultimately decided not to veto it, allowing the legislation to become law by default without her signature.

FSC's Alison Boden Testifies Against California Age Verification Bill, Urges Action to Defeat It

Free Speech Coalition Executive Director Alison Boden testified Tuesday against AB 3080, California’s version of the age verification bills being sponsored around the country by anti-porn religious conservative activists.

Phoenix Marie Sues Aylo, Danny D Over Incident on Digital Playground Set

Phoenix Marie has filed a lawsuit against Aylo, performer/producer Danny D and other defendants, alleging she has suffered defamation and damage to her career over a 2023 incident on a Digital Playground set in Spain.

New Premium Creator Platform 'Lemon Social' Launches

Premium creator platform Lemon Social has debuted.

Atlanta Authorities Renew Attack on Adult Boutique Tokyo Valentino

The saga of beleaguered Georgia adult boutique Tokyo Valentino continues with a renewed attempt by authorities to shut down another of its locations.

MomPOV Producer Pleads Guilty in GirlsDoPorn Case

MomPOV producer Doug Wiederhold, who was formerly the partner of GirlsDoPorn owner Michael Pratt as well as the first male talent for GDP, pleaded guilty Thursday to a federal conspiracy charge.

Streamate Exec Liz Rek Joins FSC Board

The Free Speech Coalition board of directors has tapped Streamate executive Liz Rek as its newest member, effective immediately.

2024 XBIZ Creator Awards Nominees Announced; Voting Now Live

XBIZ is pleased to announce the nominees for the 2024 XBIZ Creator Awards, presented by Fansly.

Show More