Private Vows to File Counterclaim Against Bunimovitz

BARCELONA — The feud between Private Media Group and the company’s former CEO Ilan Bunimovitz is heating up with Private saying it intends to file counterclaims against Bunimovitz, seeking monetary damages and other relief.

According to documents obtained by XBIZ, the move is in response to Bunimovitz’s and two large investors’ claims alleging mismanagement of the company’s business by the company’s three independent directors, Johan G. Carlberg, Peter Dixinger, Bo Rodebrandt and Private’s CEO and chairman Berth Milton.

The papers say Private believes that the allegations are without merit and are an improper attempt to circumvent valid and lawful actions of the disinterested majority of the board of directors, including all three independent directors and to instead place control of the company in the hands of a disgruntled former employee (Bunimovitz), his former subordinate employee (Eric Johnson) and a creditor (Consipio Holding BV).

The company also states that Bunimovitz’s actions are a clear and serious breach of his fiduciary duties and have been taken in bad faith to advance his interests.

According to the documents, Bunimovitz also has filed an employment arbitration demand and related claim against the company alleging that his termination on July 19 was without cause and taken in retaliation for his demands of an independent investigation of Milton’s alleged “self-dealing transactions.”

Bunimovitz also claims his termination was an effort by the company to silence him and that his termination wasn’t properly authorized by the board of directors.

But Private says both Bunimovitz and his attorneys were aware of the request made by the chairman of the board of directors to terminate him since at least May.

In addition, the company says the “self-dealing transactions” included payment of rent for the chairman’s personal office, the failure of the chairman to repay a multimillion- dollar loan from the company and unauthorized cash payments that the chairman be directed to himself, all of which, according to the company, were under review by the independent directors since Jan. 2010 and disclosed in the company’s SEC reports.

In court documents filed with the Clark County District Court of Nevada on Aug. 13, Bunimovitz claims that “Milton doesn’t own or control a majority of Private’s outstanding common stock.” But, according to the filing, “Milton has stated that he intends to cause Private to issue millions of additional shares of Private to himself or entities he controls to ensure that he does control a majority of Private stock.”

A Nevada judge last week issued a temporary restraining order against Private, putting a halt to any special meetings by Private’s board of directors without authorization from the court.

The injunction also enjoins Private from issuing any additional shares of stock, incurring any additional debt, disposing of any business assets outside of the ordinary course of business and making any loans to any officer, affiliate or director of the company.

A hearing has been set for Sept. 3, with the judge planning to weigh a preliminary restraining order and whether a receiver should be appointed to handle Private’s business dealings.

Bunimovitz told XBIZ that he couldn’t talk about on-going litigation.

Private’s attorneys did not immediately respond to XBIZ for comment by post time.

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

Rights Groups File Amicus Brief Supporting Backpage Defendants

Woodhull Freedom Foundation has joined Foundation for Individual Rights and Expression, Reason Foundation, and Electronic Frontier Foundation in filing an amicus brief in support of an appeal by the former operators of Backpage.com.

UK Lawmaker Calls for Ban on Choking in Online Adult Content

British lawmaker Jessica Asato stated in an interview aired on Sunday that she plans to ask Parliament to outlaw online adult content featuring the act of choking.

Feet4Cash Joins Pineapple Support as Sponsor

Feet4Cash has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

Report: VPN Usage Surges in France After Aylo Restricts Access to Pornhub

France has experienced a surge in virtual private network (VPN) signups after Aylo, which operates Pornhub, Redtube and YouPorn, cut off access to those sites in the country in the wake of new age verification regulations, business news site MENAFN is reporting.

New Creator Directory 'TrustyFans' Launches

TrustyFans, a newly launched directory designed to help fans discover their favorite creators, is now live.

Corey Silverstein to Host Webinar on 'SCOTUS Age Verification Ruling'

Where Does Age Verification Go From Here," to livestream July 10 at 4 p.m. (EDT).

FSC Publishes Guidance on Google Analytics Lawsuits

The Free Speech Coalition (FSC) has published guidance on how adult websites can protect themselves in the wake of several consumer class action lawsuits filed against sites for using Google Analytics.

BranditScan, CreatorTraffic Partner for 'Creators & Agencies' Initiative

BranditScan and advertising network CreatorTraffic have partnered for an initiative to help creators and agencies generate traffic and protect their content.

Teasy Agency Joins Pineapple Support as Supporter-Level Sponsor

Teasy Agency has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

Aylo, Pineapple Support Partner for Mental Health Video Series

Aylo has teamed up with Pineapple Support to create a safety video series aimed at educating performers and creators about mental health.

Show More