Rascal Video Levels Breach-of-Contract Charge Against Topco

LOS ANGELES — Rascal Video on Tuesday filed suit against Topco Sales' past and current operators, claiming the sex toy company breached its contract over unpaid royalties and continues to sell its products.

The federal lawsuit has its roots in Topco's move in July to make a general assignment for the benefit of creditors to pay off bills to avert Chapter 7 bankruptcy.

At the time Topco officials said all “inventory, equipment and means of production, packaging and shipping, as well as all trademarks, unexpired licenses and other intellectual property, including the Topco name and other business and brand names” were sold to World Sexy Media Investment LLC (WSMI).

In the suit filed this week, Los Angeles-based Rascal Video  — which owns and operates Channel 1 Releasing, the Rascal Video brand and Live and Raw, as well as the Chi Chi LaRue trade name — said that after it learned that Topco paid off creditors through general assignment, it also found out that  WSMI "is owned, at least in part, by the owners of the old Topco."

Rascal Video that it didn't receive formal notice of the assignment and never received a final statement of sales and inventory as specified in its contract with Chatsworth, Calif.-based Topco, which was founded in 1973.

Because of the deficiencies, Rascal Video deemed the contract terminated. But now, according to the suit, WSMI plans on continuing with the deal, even though Rascal Video declared it a goner.

"[WSMI] has announced that it intends and has continued to manufacture and distribute, distribute, sell and market adult products internationally under the Rascal marks despite termination of the license agreement," Rascal Video said in the suit.

Further, Rascal Video alleges in the suit that it lost leverage in collecting funds it was owed as a result of Topco's decision to choose general assignment over Chapter 7 and allowing an assignee to sell off the company to its old operators.

"New Topco conspired with and aided and abetted old Topco's fraud in order to obtain the assets of old Topco at less than their fair value in order to defraud and hinder the creditors of old Topco," the suit said.

Past and current Topco CEO Scott Tucker, who declined comment to XBIZ over the suit, has denied any obligation to pay Rascal Video's royalties prior to the general assignment, according to the suit.

As a result, Rascal Video has asked the court to void general assignment and also has requested that the new Topco and Tucker be restrained from further transfers of old Topco assets. It also has asked for a receiver be assigned to manage old Topco assets.

In addition, Rascal Video has asked for an accounting identifying all sales and inventory of its products manufactured and distributed by the olds and new Topco.

The complaint, which asks for unspecified and enhanced damages, makes additional charges that both the past and current Topco was distributing goods under the Dirk Yates mark without permission.

Rascal Video also asks for a declaration stating that its original Topco deal is not renewable because of an earlier default on payment obligations and an order requiring Topco's present ownership to destroy Rascal Video's body molds used in manufacturing sex toys.

View Rascal Video's suit

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

Strike 3 Holdings Sues Meta for Pirating Vixen Media Group Content to Train AI

Vixen Media Group owner Strike 3 Holdings filed suit in federal court this week, accusing Facebook parent company Meta of copyright infringement and alleging that Meta has extensively pirated VMG content to train its artificial intelligence models.

Full Circle Debuts New 'Cleo Feather' Vibe

Pleasure brand Full Circle has introduced its new Cleo Feather Tickler vibrator.

Pjur Launches 'Toy' Line in North America

Pjur has announced its Toy series of wellness products will be available for purchase in the U.S. starting in September.

Orion Expands Cottelli 'Costumes' Line

Orion Wholesale has introduced two new outfits from its Cottelli Costumes line.

Harry Styles' Lifestyle Brand Enters Sexual Wellness Space With 'Pleasing Yourself' Vibe, Lube

Pleasing, the lifestyle brand founded by Harry Styles, has launched its first sexual wellness product line, Pleasing Yourself, featuring a double-sided vibrator and a silicone lubricant.

Tenga Names Kyrie Hara Sales Lead

Japanese pleasure brand Tenga has appointed Kyrie Hara as its new sales lead for Tenga USA.

Electric Novelties Expands 'Together' Collection

Electric Novelties has introduced four new items from its Together collection.

Friday is Final AV Compliance Deadline in UK

Friday, July 25 marks U.K. media regulator Ofcom’s deadline for user-to-user services such as tube, cam and fan sites to implement its requisite “highly effective age assurance” measures for preventing minors from viewing adult content.

Motorbunny Debuts 'Grip' Stroker Attachment

Motorbunny has introduced its Grip stroker sleeve attachment for its sex machines.

SOS Distribution Names Jake Solorzano Account Executive

SOS Distribution has appointed Jake Solorzano as its new account executive.

Show More