Former Friendfinder Executives Face Civil Suit

PALO ALTO, Calif. — Various Inc., the parent company of Friendfinder, has filed a suit against two former executives for breach of contract, misappropriation of trade secrets and defamation, among other charges, after they left the company and formed their own.

The suit filed in Santa Clara Superior Court names Jack Mardack, a former affiliate manager, and Sean Barrett, a former affiliate coordinator.

After Friendfinder terminated Mardack and Barrett, the Palo Alto, Calif.-based online dating website company said that Mardack poached the company’s affiliate list while working there and that both executives embezzled and diverted company funds, the suit says.

In the suit, the company further alleges that Mardack shared its affiliate list with competitors, helped set up a competing joint venture while employed at Friendfinder and brokered unauthorized payouts while paying those funds to himself and Barrett.

The suit also said that Mardack made false statements that the company’s “payment processing was in jeopardy due to Friendfinder’s bad financial condition.”

Mardack, in an interview with XBiz, denies all of the suit’s allegations, and said he was not fired but left Friendfinder because of a “hostile environment.”

Later, Mardack formed a new company, Profit Lab, and tapped Barrett as a vice president.

Mardack’s Profit Lab does consulting work for Sex Search, a direct competitor of Friendfinder.

“I am saddened by the retaliatory sentiment and paranoid tone from Friendfinder,” said Mardack, who noted he had worked at Friendfinder for two years. “I’m a working stiff and did no harm.

“Ultimately, I didn’t take away such an affiliate list,” he said. “One who does business in this industry knows that everyone who works in it also has a personal list.”

Various said in the suit that Friendfinder, as a result of the allegations, sustained loss of income and future business and garnered a loss of reputation.

Friendfinder attorney Ira P. Rothken told XBiz that “the crux of the case is about individuals who were in a position of trust who decided to camouflage traffic and links for their own benefit.”

“This is something that the industry as a whole should be wary of — the situation where employees hide in a sea of company links,” he said. “This is a new form of cyber-embezzlement.”

Friendfinder’s parent is asking the court to award damages and attorneys fees, as well as a permanent restraining order against Mardock and Barrett from future use of its affiliate list.

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

Brazil Invites Public Input on AV Guidelines

Brazil’s National Data Protection Authority (ANPD) on Friday launched a public consultation on developing guidelines for age verification mechanisms under the country’s Digital Statute for Children and Adolescents (Digital ECA), which requires adult websites to age-verify users located in Brazil.

Paysite Confidential: Inside the Creator Economy's Shift Toward Ownership

For years, the adult industry’s creator economy has been defined by platforms — powerful engines of discovery, monetization and scale that reshaped how performers connect with their audiences.

Senator Urges DOJ to Crack Down on 'Obscenity,' Attacks OnlyFans

U.S. Senator Jim Banks of Indiana this week urged Acting Attorney General Todd Blanche to reestablish the Department of Justice’s defunct Obscenity Prosecution Task Force in a letter that targets OnlyFans while repeatedly conflating “obscenity” with legal adult content.

UN Experts Urge US, Canada to Prosecute Aylo, Others for 'Exploitation'

GENEVA – The United Nations Office of the High Commissioner for Human Rights (OHCHR) has issued a press release in which two U.N. special rapporteurs, cited as experts, accuse Aylo and other companies of complicity in sexual exploitation.

Tennessee Governor Signs Bill Requiring Warnings on Adult Stores

Governor Bill Lee on Tuesday signed into law a bill requiring adult stores, theaters and other establishments in Tennessee to post warning signs cautioning patrons that they “may be contributing” to sexual assault and human trafficking.

Kickstarter Revokes New Rules Banning Fundraising for Adult Content, Products

Crowdfunding platform Kickstarter announced Tuesday that it has reversed its recent decision to impose new “Mature Content” rules banning projects that involve adult content and sextech.

Report: Irish Justice Minister Seeks UK-Style Ban on 'Extreme' Content

Ireland’s justice minister plans to introduce legislation criminalizing possession and distribution of “extreme” pornography, according to a report by the Irish Independent.

New Kickstarter Rules Ban Fundraising for Adult Content, Products

Crowdfunding platform Kickstarter has posted new “Mature Content” rules banning projects that involve adult content and sextech.

WebGroup Czech Republic Settles Florida AV Suit, Will Pay $1.2 Million

WebGroup Czech Republic (WGCZ), the parent company of XVideos, XNXX, BangBros and GirlsGoneWild, has settled a lawsuit filed by the state of Florida over those sites’ alleged failure to age-verify Florida users before allowing access to adult content.

AEBN Publishes Popular Searches for March, April

AEBN has published the top search terms for March and April from its straight and gay theaters in all 50 states and the District of Columbia.

Show More