Penthouse Asks Judge to Dismiss Claims Over AFF Venture

LOS ANGELES — Penthouse Media Group attorneys are seeking dismissal of a case filed by Broadstream Capital Partners, which alleged the adult publisher and licensor breached a deal to acquire Various Inc. as a joint venture.

Penthouse purchased Various in a cash-and-stock deal for $500 million last December. Various owns and operates AdultFriendFinder.com and dozens of other social-networking sites.

In its suit, originally filed in Los Angeles Superior Court in December and moved to U.S. District Court in February, Broadstream alleged that Penthouse committed breach of contract, breach of the covenant of good faith and fair dealing, breach of fiduciary duty and constructive fraud.

Penthouse filed a motion last week to dismiss four of the five counts, and said it “intends to file a motion for summary judgment respecting [Broadstream’s] first purported claim for breach of contract after taking discovery.”

In a filing obtained by XBIZ on Monday, Penthouse hinted that it would challenge the breach of contract complaint by focusing on the nondisclosure agreement portion of the original deal, claiming that it is unenforceable.

So far, attorneys for both sides have made two attempts through telephonic discussions to try to resolve the case, with the latest held two weeks ago after Broadstream amended its original complaint.

Broadstream in the suit asserted that during the bidding process, Broadstream “learned that Penthouse directly contacted Various to put in a separate bid,” and “ultimately submitted a bid that was higher than the offer from Broadstream and converted this business opportunity from an opportunity for the joint venture to an opportunity for Penthouse alone.”

The effective date of the agreement as listed on the agreement attached as an exhibit to the complaint is Dec. 20, 2006. Penthouse publicly announced its acquisition of Various on Dec. 12, 2007.

Broadstream, in its amended complaint, said that Penthouse CEO Marc Bell at one point denied that his company entered into a contract with Broadstream, “claiming instead that the agreement was with one of Bell’s other companies.”

Broadstream said in each of its four claims that the damages would be “believed to be in excess of $20 million.”

Both parties are slated to face Judge Valerie Baker Fairbank on the motions to dismiss when they meet at U.S. District Court in Los Angeles on May 19.

Attorneys for both Penthouse and Broadstream were unavailable for comment at 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

XBIZ Miami's Host Hotel Sold Out, General Registration Now Open

Guest rooms at XBIZ Miami’s exclusive conference venue, Nautilus Sonesta Miami Beach hotel in South Beach, are now completely sold out.

Adult Industry Educational, Networking Platform 'Imperfectly You' Launches

Imperfectly You, an educational and networking platform for adult industry workers, has officially launched.

Segpay to Launch News Network for High-Risk Merchants

Segpay has announced that it will launch the Segpay News Network (SNN) on April 15.

Age Verification Watch: Patching the Holes

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Pineapple Support to Host Autism Spectrum Support Group

Pineapple Support is hosting a free online support group for performers and creators who are, or suspect they may be, on the autism spectrum.

ImLive Launches Revamped Member Loyalty Program

Cam platform ImLive has revamped its member loyalty program.

GoFundMe Set Up for Danny Ferretti's Medical Expenses

A GoFundMe campaign has been set up for Fangear founder Danny Ferretti, who requires extensive lung surgery.

Byborg Acquires Cuties AI

Byborg Enterprises has acquired adult artificial intelligence startup Cuties AI.

Irish Government Releases Report on Sex Work Decriminalization Legislation

The Irish government has released a report reviewing a 2017 law that decriminalized sex work across the country.

Texas Bill Would Require Age Verification for Online Sex Toy Sales

A new bill in the Texas state legislature would require online retailers to implement age verification of purchasers before selling “obscene devices” to anyone in that state.

Show More