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

X3 Amsterdam Imports Hollywood Glitz With Continental Style

A throng of fans from across Europe and around the globe descended on the Passenger Terminal building on Friday, eager to meet their favorite adult stars at the inaugural X3 Amsterdam fan expo.

California, Florida Reps File Latest Bill to Repeal Section 230

Two members of Congress on Thursday introduced new legislation to repeal Section 230 of the Communications Decency Act, which protects interactive computer services — including adult platforms — from liability for user-generated content.

Admaze Introduces Flat-Rate Media Buying for Publishers, Advertisers

Adult ad network and agency Admaze has introduced a flat-rate media buying model for publishers and advertisers.

Centro Launches Lifetime Revenue Share Affiliate Program 'CentroPulse'

Centro has launched CentroPulse, its new lifetime revenue share affiliate program for performance marketers, adult traffic affiliates, established webmasters, and sub-affiliate network operators.

Fanstage Launches Telegram Sales Solution

Fanstage has launched its new platform, allowing creators to sell PPV content directly from their Telegram DMs.

Second Bill Proposed to Shield US Sites From 'Foreign Censorship'

For the second time in recent weeks, a Republican congressman has introduced legislation to bar U.S. courts from helping to enforce foreign laws restricting speech that would domestically be protected under the First Amendment, potentially including foreign age verification laws.

SextPanther Launches in EU, UK

SextPanther has expanded its territory to include the U.K. and E.U.

Segpay Expands to Australia, Names Sam O'Connell Managing Director

Segpay has expanded its territory to include Australia and named Sam O’Connell as managing director of its Australian operation.

Ondato Joins ASACP as Corporate Sponsor

Age and identity verification company Ondato has signed on as the latest corporate sponsor for Association of Sites Advocating Child Protection (ASACP).

2026 XBIZ Amsterdam Conference Schedule Announced

XBIZ is pleased to announce the release of the full show schedule for XBIZ Amsterdam, set to take place Sept. 10-13 at Passenger Terminal Amsterdam.

Show More