LOS ANGELES—On Friday, attorneys for talent agency ATMLA owner Mark Schechter countersued the agency's former owner, Roy Liberboim, and its manager, Shy Love (under her real name), on various grounds including breach of contract, intentional interference with prospective economic advantage, unfair business practices and fraud. The countersuit comes roughly three weeks after Love sued Schechter, claiming that he'd defamed her and sought to ruin the new talent agency she and her husband had opened, VIP Connect.
The main charge in the countersuit appears to be the couple's opening of VIP Connect, which Schechter claims is in violation of the asset purchase agreement that Liberboim, Love and Schechter had entered into in October 2012, which provided, in part, that "The Seller and Mrs. Liberboim agree not to ... solicit, negotiate or enter into any contract or agreement; commit any act or omission; or work with any third party of model in any matter whatsoever which would cause the Purchaser any prejudice during the licensing term or at any time after the purchase of the assets contemplated herein." Specifically, Schechter claims that Liberboim, Love or both had "provided confidential information and false information to an adult industry gossip blogger who then posted said information." That blogger, of course, was Mike South.
Another paragraph of the cross-complaint states, in part, that, "Seller shall not, for a period of three (3) years following the final transfer of ownership in the Assets directly or indirectly operate, create or have an interest in any organization or entity in North American [sic] and/or Central American [sic] which is substantially engaged in the operation or management of an adult talent agency."
Other "causes of action" in the cross complaint accuse Liberboim and Love of disparaging Schechter's abilities as an agent by allegedly making statements such as "Mark doesn't know what he's doing," and "Mark will fail" to Schechter's current and prospective clients, as well as various adult industry professionals. He also claims that Love tried to disrupt his relationships with adult industry models by trying to damage Schechter's reputation in the community, "poaching" models, attempting to get Schechter's membership in the agents' trade association LATATA canceled, and "other actions and activities meant to damage" him.
The cross-complaint also accuses Liberboim and Love of fraud regarding the initial sale of the agency, alleging that they provided false financial information in the form of the couple's 2011 tax returns, profit and loss statements and "other revenue reporting information."
Schechter released the following statement regarding his countersuit: "By nature, I am not a litigious person, but after enduring over 2 years of relentless attempts to cause financial and personal harm to my business and my personal life, and ironically having to answer to the recent ridiculous and frivolous lawsuit against me, it was time to move forward with legal action. Prior to being served with the recent ludicrous allegations, I was resolved with not pursuing my legal rights and simply continuing to run my business as I have, and enjoying the results of my efforts growing ATMLA to the status that it maintains today, being one of the top adult talent agencies in the industry. It's unfortunate that Shy chose not to take advantage of this opportunity to sell her agency for more than it was worth, and be able to open another agency in violation of an agreement and do so without any recourse. Instead, she has chose to open up the lid to 'Pandora's Box.' I have been an avid poker player for 30 years, and every so often you're dealt a hand where you not only have the best cards, often referred to as 'Holding the Nuts,' but your opponent bets and raises into you 'All in,' and I simply respond with ... 'I call.'"
At press time, AVN had not yet received its own copy of the complaint, which can be read here, nor the Answer which Schechter's attorney, Karen Tynan, had filed in response to Love's/Liberboim's original complaint. Also at press time, no hearing date had yet been set in the case.
