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 © 2025 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

Chaturbate Announces 2025 Music Contest Winners

Chaturbate has revealed the winners of its 2025 music competition.

2026 XBIZ Exec Awards Pre-Noms Open With Debut of New 'Impact' Honors

XBIZ is pleased to announce that the pre-nomination period for the 2026 XBIZ Exec Awards, the adult industry’s premier career honor, begins today and runs through Oct. 14.

MYM Launches New Traffic System

German creator platform MYM has launched a new traffic system for its members.

Ukrainian Content Creators on Hook for Nearly $10M in Back Taxes

Content creators in Ukraine owe the equivalent of $9.3 million in back taxes, according to the country's State Tax Service.

European Patent Office Board of Appeals Revokes EIS GmbH Patent

The European Patent Office (EPO) Board of Appeals last week ruled in favor of pleasure brand LELO in the company's ongoing dispute with Satisfyer parent company EIS GmbH.

Eroutique Relaunches Site Through YourPaysitePartner

Eroutique has relaunched its official website through YourPaysitePartner (YPP).

Update: Pornhub Will Not Block Ohio, Despite AV Law

Pornhub parent company Aylo will not block access to its websites in Ohio, despite new state age verification rules that came into effect Sept. 30.

Pineapple Support, Pornhub to Host 'ADHD-Friendly' Support Group

Pineapple Support and Pornhub are hosting a free online support group for performers with ADHD.

Judge Dismisses Some Claims in 'Children of Pornhub' Trafficking Suit

A United States district judge on Friday dismissed some but not all claims against Aylo in a long-running case involving CSAM allegations featured in the influential 2020 New York Times article “The Children of Pornhub.”

FSC Sets Key Dates, Qualifiers for December Board of Directors Election

The Free Speech Coalition (FSC) today announced key dates and qualifiers for its upcoming Board of Directors election.

Show More