Zango's Federal Lawsuit Against Epic Cash Dismissed

SEATTLE — A federal judge on Friday dismissed claims brought on by online advertising company Zango Inc. against affiliate program Epic Cash.

The legal dispute ruled on Friday commenced after Epic Cash filed suit in California against Zango and the owners of AdultFriendFinder.com.

Epic Cash charged unfair business practices, claiming Zango’s “wrongful display” of pop-ups and other advertisements “blocked content on [Epic Cash’s] websites for the purpose of promoting Zango’s clients, who offered services directly competitive to [Epic Cash’s],” according to court documents.

Zango responded with a countersuit, and Epic Cash later submitted a motion for summary judgment to U.S. District Court in Seattle.

On Friday, in a stinging rebuke, U.S. District Judge Ricardo S. Martinez said that Zango’s complaint was so broad that it would have amounted to an attempt to pre-empt all of Epic’s claims in the California action.

“Consideration of this complaint would impermissibly entangle this court in needless determinations of state law, possibly both Washington and California law under the ‘violates no right’ language of the request for relief,” he wrote.

Martinez also said that Zango’s suit at federal court in Seattle amounted to “forum-shopping.”

“The court notes the fact that Zango filed this suit just six days after counsel was shown the proposed California complaint as an invitation to discuss settlement,” Martinez wrote. “This can only be viewed as a race to the courthouse in an effort to gain a more favorable forum. Zango concealed from Epic the fact that the suit had been filed for more than five months, thereby stalling the filing of Epic’s complaint in California.”

Epic Cash attorney Gary Kaufman told XBIZ he agreed with the judge.

“[This was] a blatant attempt to gain a hometown advantage,” said Kaufman of Los Angeles-based law firm Kaufman Law Group. “Zango deliberately concealed this action and then used it as an ace in the hole to preempt Epic Cash’s California claims and keep the litigation in its backyard.

“Epic Cash can now move forward with its suit against Zango and AdultFriendFinder in the proper forum.”

In the California case, filed at Santa Clara County Superior Court, Epic Cash claims that once a computer is infected with Zango adware, the Zango Search Assistant monitors the user’s browser and collects keywords that are then used to trigger pop-up ads.

In that suit, AdultFriendFinder, a competitor of Epic Cash’s EpicCams.com website, is accused of having used Zango’s services to have “diverted traffic away from Epic Cash sites and converted Epic Cash’s business to their benefit,” by “taking advantage of plaintiff’s marketing efforts,” presumably when potential consumers are inputting certain keywords or searching for specific sites, which subsequently leads to Zango pop-up ads.

Epic Cash attorney Colin Hardacre, of Kaufman Law Group, told XBIZ that the California case was stayed pending the federal court’s decision.

"Now that the Washington case has been dismissed we can now move ahead aggressively in discovery," he said. "We have depositions pending, of both Zango and AdultFriendFinder, including Zango’s president, Keith Smith. They also owe us written discovery.

"Gary [Kaufman] and I both feel that Epic Cash’s chances of success in the California case are very good — we don’t take losing cases."

Epic Cash has asked for $750,000 in damages in the California case.

Zango spokesman Steve Stratz told XBIZ that the company plans to mount a veritable defense in the California case.

"We continue to be confident that Epic Cash's case is baseless and its claims are without merit and we will vigorously defend ourselves in the matter," he said.

Related:  

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

Pornhub Awards Fiesta: A Night of Music, Dancing and Camaraderie

The eighth annual Pornhub Awards transformed Los Candiles Night Club in Glassell Park into a celebration of glamour, glitter, fashion and fame Wednesday night, as performers, creators and industry insiders toasted the year’s winners and danced late into the night while Diplo and Midnight Mary kept the party pulsing from behind the decks.

Ukrainian Parliament Rejects Porn Decriminalization Bill

The Verkhovna Rada, Ukraine’s parliament, on Thursday voted against passage of a bill that would have decriminalized the creation and distribution of pornography in that country — an activity that currently carries a prison sentence of three to five years.

FSC Launches Pride Fundraising Drive

The Free Speech Coalition (FSC) has launched its Pride Fundraising Drive to support its efforts on behalf of the LGBTQ+ community.

Cultpix Debuts AI-Generated Vintage Adult Films at Cannes

At this year’s Cannes Film Festival, B-movie streaming service Cultpix debuted a collection of AI-generated short films drawn from erotic magazine photo spreads published 50 years ago.

Ofcom Fines Youngtek Solutions $800K for AV Noncompliance

U.K. media regulator Ofcom on Wednesday imposed fines totaling 600,000 pounds (more than $800,000) against adult site operator Youngtek Solutions for failing to implement age checks and respond to information requests as required for compliance with the Online Safety Act.

Pornhub Launches Lesbian Site 'Pornhub Sapphic'

Pornhub has launched Pornhub Sapphic, a site dedicated to female and non-binary content and creators.

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.

Show More