It has cautioned that, unless it can repay or restructure its obligation, it will face “a material deficiency in our short term liquidity.” With these shortfalls in mind, the company again announced an intention to make an initial public offering of stock, representing a 49% stake in the company, with plans to use the proceeds to pay down its debt and become listed on the New York Stock Exchange.The contemplated public offering, scheduled to reach the market on January 27, 2010 was delayed by FFN.After discovering that users had been using the service to seek sexual partners, he launched Adult Friend Finder as a spin-off, followed later by other spin-offs dealing with different regions and niches.Much of the company's growth without investment capital has been attributed to its affiliate program, with more than 500,000 affiliates to date.Shashoua also said credit card companies had refused to process transactions for the company's Internet businesses.On November 13, 2016, it was reported that a database of over 412 million accounts, including usernames, e-mails, and passwords, had been breached and leaked from several Friend Finder Networks websites.The breach included account data from Adult Friend Finder (which constituted over 339 million accounts), Cams.com, and Penthouse, including accounts that had supposedly been deleted.
The company had also indicated that it lacked existing cash or cash from operations to repay a .5 million debt that was due July 31. However, users can pay for certain upgrades or to access certain services. Plaintiff Alejandro Gutierrez is a long time user of AFF. ¶ 13, and Defendant's records indicate he registered on July 24, 2003, Buckheit Decl. Plaintiff continued to use the site until at least September 6, 2018. As part of the registration process, AFF collects users' personal information, including names and email addresses, billing information, and other content the users might submit. Buckheit's averments in his Supplemental Declaration, ECF 34-2. Plaintiff alleges that in October 2016 "a hacker or group of hackers breached Defendant's system and downloaded two decades worth of personal information of 339 million AFF users." Compl. Based on this breach, and Defendant's alleged failure to prevent and timely cure it, Plaintiff brings this putative class action, alleging the following causes of action: (1) negligence; (2) breach of implied contract; (3) invasion of privacy; (4) violation of California's Customer Records Act, Cal. Code §§ 1798.80, et seq.; (5) violation of California's Online Privacy Act, Cal Bus. Code §§ 22575, et seq.; and (6) violation of California's Unfair Competition Law ("UCL"), Cal. The Federal Arbitration Act ("FAA") applies to arbitration agreements affecting interstate commerce. BETH LABSON FREEMAN United States District Judge [Re: ECF 11] Before the Court is Defendant Friend Finder Networks, Inc.'s motion to compel arbitration and to dismiss under Federal Rule of Civil Procedure 12(b)(1). The Court heard argument on the motion on April 11, 2019. For the reasons discussed herein, the motion is GRANTED, and the action is STAYED pending arbitration. Holland confirmed that the site "does not collect data regarding our members' sexual preferences."Leaked Source said breaking with usual tradition because of the kind of breach, it will not make the data searchable.Friend Finder Networks (formerly Various, Inc.) is an American internet company founded in 1996 by Andrew Conru.Defendant Friend Finder Networks, Inc.'s wholly-owned subsidiary owns and operates the website Adult Friend Finder ("AFF"), an adult online dating site. Users of the website are required to register in order to use the site but otherwise may use the website for free.