AdultShop.com Settles U.S. Payment Dispute

SYDNEY — Bringing an end to the on-going credit card processing problems that have besieged Australian adult Internet retail company AdultShop.com, the company announced today that it had settled an outstanding legal claim against it that could have potentially cost more than $2.8 million in damages and brought the company before the U.S. Supreme Court.

The underlying lawsuit, brought by a California credit card payment processor in 2002, alleged that AdultShop.com owed the processor approximately $1.86 million in outstanding charges and $1 million in general damages.

The case was also scheduled to be heard before the U.S. Supreme Court in January 2005.

“The legal fees that would have been incurred by the company were expected to have been significant,” said KJ Heitman, chairman of AdultShop, in a statement release Tuesday. “On the advice of the company’s United States-based legal advisors, the directors agreed to what is considered to be a fair and reasonable settlement.”

The terms of the agreement call for AdultShop to pay the processor $1.5 million to settle all claims against it.

AdultShop also made legal headlines recently when it initiated a multimillion dollar lawsuit against two Australian businessmen who had sold the company their online erotica division.

AdultShop paid roughly $12 million to Dean Shannon and Steve Jones in exchange for the division, but the credit card processor’s looming litigation caused AdultShop stock to drastically drop in price. The company sued Shannon and Jones in October 2004 to recoup some of its loss.

AdultShop alleged that the two businessmen breached the Australian Trades Practices Act and had misrepresented the benefits of merchant accounts.

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

New EU User Stats Could Reclassify Major Adult Sites Under DSA

Three high-traffic adult sites previously classified as “very large online platforms” under the European Union’s Digital Services Act are reporting user numbers below the threshold for that label, opening the way for possible downgrading of their obligations under that law.

Spicerack Launches 'SpicyFanz' Creator Monetization Platform

Adult product marketplace Spicerack Market has launched its SpicyFanz creator monetization platform.

Singapore Livestreamer Jailed for Performing 'Obscene Acts' in Public

A judge in Singapore on Thursday sentenced a Vietnamese woman to three weeks in jail for livestreaming “obscene acts” from a public area.

FSC Withdraws Support for North Dakota AV Bill

The Free Speech Coalition (FSC) has withdrawn its support for an age verification bill in North Dakota, following changes made by the state legislature.

APClips Launches New Blog

APClips has launched a blog, AmateurPorn.com.

Centrobill Launches 'Max' Payment Suite

Payment processing service Centrobill has launched its new Max Suite toolkit.

AEBN Publishes Popular Searches by Country for December, January

AEBN has released the list of popular searches from its straight and gay theaters by country in December and January.

South Dakota Legislators Debate AV Legal Strategies

The South Dakota state Senate Judiciary Committee on Tuesday heard testimony and debate over two competing age verification bills, in a hearing that focused largely on which piece of legislation could best withstand potential legal challenges.

Mobile OnlyFans Management Platform 'TopCreator' Launches

Mobile OnlyFans management and chat platform TopCreator has launched.

JustFor.fans Marks Its 7th Anniversary With Palm Springs Conference

JustFor.fans is celebrating its seventh anniversary with a four-day conference and party in Palm Springs May 18-21.

Show More