Playboy Class Action Lawsuit Settled

DOVER, Del. — A settlement has been reached in a class action suit against Playboy Enterprises Inc. and founder Hugh Hefner stemming from his private takeover of the company.

The Associated Press reported that a Delaware judge approved the settlement on March 19 in which Playboy shareholders agreed to accept $5.25 million in cash in return for dropping the lawsuit.

Shareholders will receive about  $4 million after attorney fees and expenses, or 17 cents per share.

Hefner made a play for the company in 2010 offering $5.50 a share for the roughly 30 percent of Playboy's outstanding voting shares he didn't own.

But in 2011, the value of the company was questioned, part of which was an action by two shareholders who sued complaining that they were shortchanged and weren't given enough information about the deal. They claimed Hefner underestimated the value of his Los Angeles mansion as part of his plan to pay the less than market value.

An amended shareholder lawsuit was filed in Delaware Chancery Court against Hefner and Playboy Enterprises citing the worth of the Playboy Mansion to be $54 million, not the $1.2 million Hefner and Playboy claimed.

The bid was later upped to $6.15 a share, an 18 percent premium over the previous day's closing price.

Hefner took control of the company in the 2011 in the deal funded with $195 million of debt and $185 million from private investment firm Rizvi Traverse.

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

Former Backpage CEO Carl Ferrer Sentenced to 3 Years Probation, $40,000 Fine

Former Backpage.com CEO Carl Ferrer was sentenced in federal court today to three years' probation and a $40,000 restitution fine for a conspiracy conviction related to money laundering through the defunct website.

Playboy Wins $81 Million Judgment in Chinese Licensing Arbitration

Playboy, Inc. was awarded $81 million in damages yesterday by the Hong Kong International Arbitration Centre in a licensing dispute with former partner New Handong Investment (Guangdong) Co., Ltd.

GirlsDoPorn Owner Michael Pratt Sentenced to 27 Years

Michael Pratt, former owner of the website GirlsDoPorn, has been sentenced to 27 years in federal prison.

Aylo Fined $5 Million as FTC, Utah Settle Safety Practices Complaint

The Federal Trade Commission and the state of Utah on Wednesday settled a complaint against Aylo, requiring the company to pay a $5 million penalty and implement measures to prevent illegal content from appearing on its sites.

XBIZ Amsterdam 2025 Show Schedule Announced

XBIZ is pleased to announce the release of the full show schedule for XBIZ Amsterdam 2025, set to take place Sept. 2-4.

FSC: Missouri Age Verification Rule Will Not Take Effect August 30

The Free Speech Coalition (FSC) announced that Missouri's proposed age verification legislation will not take effect on August 30, as it had originally estimated.

Germany Will Block Payments to AV-Noncompliant Adult Sites as of Dec. 1

Starting Dec. 1, Germany will implement new rules prohibiting financial institutions from providing payment services to adult sites deemed to have inadequate age verification systems and making it easier for the government to target websites mirroring the content of such sites.

FSC Launches Age Verification Toolkit for Adult Websites

The Free Speech Coalition (FSC) announced today that it has launched a comprehensive toolkit to help adult websites navigate age verification laws.

Trump Administration Issues Executive Order Against 'Debanking'

The White House on Thursday issued an executive order limiting financial institutions’ ability to restrict access to financial services for people or groups involved in lawful industries, a longtime goal of adult industry advocates and stakeholders.

Florida AG Sues EU-Based Adult Companies for Failing to Age-Verify Users

Florida Attorney General James Uthmeier filed a lawsuit Monday with the 12th Judicial Circuit Court of Florida against five EU-based adult companies for allegedly failing to require age verification before allowing access to adult content.

Show More