Home > News > Penthouse Denies Every Claim in Broadstream Adult FriendFinder Suit • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

Penthouse Denies Every Claim in Broadstream Adult FriendFinder Suit

Penthouse Denies Every Claim in Broadstream Adult FriendFinder Suit
Get XBIZ News
XBIZ Research
Will virtual reality headsets like the Oculus Rift revolutionize adult entertainment?
Yes
  53.13%
No
  46.88%
Out of 96 votes. Results based on votes submitted by members of XBIZ.net social network.
XBIZ 360 - Jan. 13-16, Los Angeles
Aug 31, 2008 6:00 AM PST    Text size: 
LOS ANGELES — The plaintiff in Broadstream Capital Partners vs. Penthouse Media Group recently filed a second amended complaint in U.S. District Court in Los Angeles, and the defendant has replied with a 22-page response filed Aug. 4 that essentially denies every claim made by the plaintiff.

The lawsuit by Broadstream, a merchant bank that assists with mergers and acquisitions, was originally filed in Los Angeles Superior Court in December and moved to federal court in February. The basic allegations have remained the same throughout the case, that Penthouse breached a 2006 contract to acquire Various Inc. — the company that owns and operates AdultFriendFinder.com and other social networking sites — as a joint venture with Broadstream.

The contract in question is a nondisclosure agreement between Penthouse and Broadstream that has an effective date of Dec. 20, 2006. A copy of the agreement is attached to the amended complaint. The signature of the individual who purportedly signed on behalf of Penthouse is illegible, but Broadstream attorney Deborah Klar told XBIZ that it is her understanding that the signatory was a Penthouse employee.

"I believe it was signed by Cory Hill, who I believe worked for Penthouse at the time," Klar said.

The agreement states, "Recipient [Penthouse] agrees that for a period of 12 months from the date hereof, it will not, without the prior consent of Broadstream Capital Partners Inc knowingly acquire, or knowingly provide more than the 20 percent of the financing to, any person group or entity to acquire various Inc. or any of its subsidiaries."

On Dec. 12, 2007, Penthouse issued a press release announcing its acquisition of Various.

In its Aug. 5 response to the second amended complaint (SAC), Penthouse claims, among other things, that "the individual who purportedly executed the agreement alleged in the SAC did not have the requisite authority to do so," and also that "there was no meeting of the minds and/or mutuality of obligation; consequently, there was no valid enforceable agreement as alleged in the SAC."

XBIZ was able to reach Penthouse attorney Ira Rothken, who declined to make any comment with respect to the nondisclosure agreement, except to confirm that the case does in fact hinge on the accuracy and legitimacy of the document.

"It’s axiomatic that given that the nondisclosure agreement is what the lawsuit is about, we want to ere on the side of caution and not talk about a nondisclosure agreement," he said. "I just think that it makes no sense that since the lawsuit is over a breach of the non-disclosure agreement then one ought not to comment about a nondisclosure agreement."

Rothken also confirmed that with the filing of the second amended complaint and the subsequent response, the case has entered the discovery phase.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

QUICKBITE FEATURES

Move Over Mr. T: Falcon Studios Group's New A-Team

In years past, Falcon Studios and Raging Stallion Studios have selected “Men of the Year” from their stable of exclusives to represent the kind of sex appeal and talent fans expect from the... More »

ASACP is the Solution to Protecting Children Online

Founded in 1996, ASACP is a nonprofit organization dedicated to online child protection, comprised of two separate corporate entities, the Association of Sites Advocating Child Protection and the ASACP... More »

ASACP: Online CP is a Growing Problem

The Association of Sites Advocating Child Protection (ASACP) has long valued its close working relationships with global law enforcement agencies and the mutual benefit that these channels nurture. Additionally,... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ World magazine, the industry's leading e-commerce trade publication, delivering in-depth coverage of the online, mobile and ancillary digital markets.

UPCOMING EVENTS

ANME Show

Jan 12 - Jan 13
Burbank, California

XBIZ 360

Jan 13 - Jan 16
Los Angeles, CA

XBIZ Awards

Jan 15 - Jan 15
Los Angeles, CA

QWEBEC Snow Gathering

Feb 20 - Feb 23
Quebec City, Canada
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!