Yahoo Fingered for Unfair Business Practices

LOS ANGELES, Calif. – A lawsuit filed against web portal Yahoo Inc. for unfair business practices inched forward this week following a status hearing in L.A. Superior Court, attorney David Weinman told XBiz.

The case, which alleges that Yahoo unfairly protected people who posted negative messages on its bulletin boards and falsely advertised that it prevents such abusive messages, was filed by Stephen Galton after he was subjected to what he claims were defamatory attacks by several anonymous message board users.

The charges against Yahoo stem from a single incident in December 2003 when Galton logged on to the Yahoo message boards to address a user who had written nasty remarks about the chief executive officer of one of his clients. It was at that point that Galton himself became the subject of the alleged defamatory remarks.

Remarks against Galton included comments that he was a "sleazy parasite, a grossly overpaid poser, a shyster, sleaze ball, whoredog, vermin, fat boy, and a biased ignorant fool," to name just a few of the postings.

Galton contacted Yahoo for information on the identities of the people he alleges had defamed him. But in keeping with Yahoo's message board policy, he was denied any identifying information unless a subpoena was issued.

Galton, of the business litigation firm Galton & Helm, and his partner Weinman filed a proposed class-action suit in August on behalf of all citizens of California who have faced similar situations on Yahoo message boards and who have asked Yahoo to take action, only to find that the web portal refused to stop the behavior or divulge the identities of the alleged defamers.

At the Oct. 15 hearing, L.A. Superior Court deemed Galton vs. Yahoo a "complex case," which means that it has been relegated to a group of judges who typically devote themselves to more intricate, in-depth cases. Judge Wendell Mortimer has so far been assigned to the case, although it is not yet certain if he will be the trial judge once a date is set, which Weinman said could be months if not years down the road.

Weinman suspects that Yahoo will try to dismiss the case long before the trial date.

"The reason we decided to file as a class-action lawsuit is because we feel there are a lot of people in similar situations," Weinman told XBiz. "We can help other people because we're doing a lot of the work anyway, and typically, class action lawsuits get more attention from large corporations like Yahoo than individual cases."

Weinman added that Galton & Helm has so far received hundreds of inquiries from perspective plaintiffs who claim to have had similar experiences on Yahoo message boards.

"Yahoo should fulfill its promise to the public that it does not allow abusive content," Weinman said. "But they simply haven't."

Sunnyvale, Calif.-based Yahoo runs many message boards where users can post messages regarding company activities, hobbies, interest, etc.

Under Yahoo's Terms of Service, users are asked to agree not to post any messages that are "unlawful, harmful, threatening, abusive, harassing, tortuous, defamatory, vulgar, obscene, libelous, invasive of another's privacy, hateful, or racially, ethnically or otherwise objectionable."

However, Galton's lawsuit contends, when message postings fail to adhere to Yahoo's standards, the company provides no redress to persons who are the targets of such abuse, and Yahoo rarely terminates the privileges of abusive users, even after receiving notice of such abuse.

"Our big issue is that Yahoo can protect abusive posters and allow such abusive content," Weinman said. "They are sheltering people over the interests of the people who are getting defamed. Free speech is fine, but you can't defame someone and get away with it."

Galton has also filed a separate defamation lawsuit against one of the message board posters who he was eventually able to track down. The man has been identified as an anesthesiologist living in North Carolina.

Galton claims that the postings by the man, who used the handle "mumioler," were "vicious, personal, irresponsible and defamatory," and he is seeking personal damages.

The other message posters involved in the case have still not been identified.

Yahoo was not available for comment.

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

UPDATED: Utah VPN Rule Enforcement Paused in Aylo Lawsuit

Provisions of a new Utah law making adult websites liable if minors in the state circumvent geolocation efforts to bypass age verification, which were set to come into force on Wednesday, have been put on hold until Sept. 3.

JustFor.fans Launches 'JFF Create' iPhone App

JustFor.fans (JFF) has launched its new iPhone creator management app, JFF Create.

ShootXEvents Joins ASACP as Media Sponsor

ShootXEvents has signed on as an in-kind media sponsor for the Association of Sites Advocating Child Protection (ASACP).

Pornhub Unblocks UK Users on iOS Devices, Citing Apple AV Effectiveness

Pornhub parent company Aylo on Tuesday announced that users in the United Kingdom will once again be able to access the popular site if they are using Apple devices and have confirmed their age through Apple’s U.K. age-verification process.

FSC Launches 'Know Your Rights' 1st Amendment Resource Page

The Free Speech Coalition (FSC) has launched "Know Your Rights," a resource page detailing First Amendment protest guidelines.

Utah VPN Rule for Adult Sites Takes Effect This Week

A new law in Utah comes into force Wednesday, making adult websites liable if minors in the state circumvent geolocation efforts to bypass age verification.

UPDATED: Court Approves Class Action in Labor Claims Against VMG

A U.S. district court has granted class certification in a civil lawsuit filed against Vixen Media Group (VMG) by retired performer Kenzie Anne, making it possible for additional performers to join in a class action against the company.

Brazil Invites Public Input on Guidelines for New Digital Law

Brazil’s National Data Protection Authority (ANPD) is soliciting public comments to help improve interpretation and application of the country’s Digital Statute for Children and Adolescents (Digital ECA), which requires adult websites to age-verify users located in Brazil.

X3 Expo Unveils Euro All-Stars for Inaugural Amsterdam Edition

X3 Expo, Hollywood's premier adult entertainment expo, makes its European debut at Passenger Terminal Amsterdam Sept. 11-12, bringing together fans, creators, and industry insiders for the Continent’s largest assembly of adult entertainment stars, alongside a dazzling lineup of attractions spotlighting the cutting edge of modern media and pleasure tech.

2026 Pornhub Awards Nominees Announced

The list of nominees has been revealed for the eighth annual Pornhub Awards, presented by gaming platform 1win, which will be held May 27 in Los Angeles.

Show More