SAN FRANCISCO—A federal judge for the U.S. District Court for the Northern District of California late last week dismissed a motion to sanction a class of plaintiffs who alleged an anti-competitive bribery conspiracy between Fenix International Limited and Meta Platforms executives to suppress the digital advertisement of Fenix competitors.
London-based Fenix is the parent company of OnlyFans, and Meta, also based in London, is the parent company of Instagram and Facebook. Board members of the Adult Performance Artists Guild (APAG) labor union retained counsel to sue Fenix and Meta, alleging a potential quid pro quo arrangement between the two companies to suppress the digital marketing strategies for competing adult fan networks.
U.S. District Judge William Alsup made the decision to dismiss sanctions against the plaintiffs—sought after they disavowed their conspiracy claims—based on evidence that the law firm that represents Fenix was “on both sides of the case.” The firm in question, Quinn Emanuel Urquhart & Sullivan, LLP, is a white shoe law firm with a network of global offices. Miami-based partner John O'Sullivan was retained to represent Fenix through the process of the lawsuit. However, recent filings submitted by plaintiffs’ attorney David Azar, a Beverly Hills-based partner for firm Milberg Coleman Bryson Phillips Grossman, PLLC, identified a Los Angeles-based Quinn Emanuel partner, Kenneth Chiate, as a “referring counsel” due to a 28-page legal memo that identified the alleged scheme between Fenix and Meta.
“Mr. Chiate connected me with his client’s team of professionals, and I received through them a 28-page factual and legal research memo that I understood had been prepared and refined over time by Quinn Emanuel and its client,” Mr. Azar said in a court declaration dated on August 10. Azar added: “I declare under penalty of perjury under the laws of the State of California and the United States of America that the foregoing is true and correct.” Mr. O’Sullivan denied this.
Judge Alsup told O’Sullivan that he was disturbed by the fact that Quinn Emanuel is named on both sides of the case. Law360.com reporter Bonnie Eslinger, reporting from the court, quoted Alsup as saying that this created the appearance that "the Miami office wants sanctions for what the L.A. office did.” Alsup added: “That troubles me greatly that your firm is involved on both sides of the case ... passing the case off to somebody else to sue your own client.”
AVN previously reported that claims brought against the OnlyFans corporate parent were dismissed. Further review of the order reveals that Meta is still named as a defendant. At this point, it is hard to tell whether Alsup will order the case in its entirety finally dismissed or if it will proceed with just Meta as the sole defendant moving forward.
