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 Google uphold its commitment to 'Freedom of Expression' when it comes to organic adult search results?
Yes
  32.09%
No
  67.91%
Out of 187 votes. Results based on votes submitted by members of XBIZ.net social network.
Saturday, Aug 30, 2008    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 !

PROFILES & BIOS

Q&A With EroAdvertising's Jan Huibers

Jan Huibers, the CEO and founder of global adult advertising network EroAdvertising, knows how to reach his clients — with determined and constant innovation and development of new features, all... More »

WIA Profile: Lucy Vonne

Each month, industry news media organization XBIZ spotlights the career accomplishments and outstanding contributions of Women in Adult. WIA profiles offer an intimate look at the professional lives of... More »

Howard Levine: Adult’s Real Son of Anarchy

There are only a handful of people in adult that everyone knows by their first name — sort of the T&A equivalent of Arnold [Schwarzenegger] or Kanye [West]. It could be because it’s such... 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

Sexpo

Aug 01 - Aug 03
Sydney, Australia

QWEBEC Expo Montreal

Aug 15 - Aug 17
Montreal, Canada

Asia Adult Expo

Aug 28 - Aug 30
Macau, China

CatalystCon West

Sep 11 - Sep 14
Los Angeles, California
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!