FREEHOLD, N.J. - Officials from Too Much Media released a statement Monday afternoon in response to the latest development in a lawsuit NR Media filed in August 2006.
Attorneys for NR Media filed an amended and supplemented complaint last week in federal court.
The original suit, filed by NR Media subsidiary Naked Rhino, claims that Too Much Media, creator of the NATS back-end affiliate program software, and Chief Executive Officer John Albright, are responsible for destroying Naked Rhino's business through "intentional and reckless online Internet verbal assaults concerning the reputation and operation of Naked Rhino, as well as [Too Much Media's] suspension of Naked Rhino's online payment processing, reporting and affiliate management system (NATS)."
Charles Carreon, general counsel for NR Media, told AVN Online the new information filed in federal court last week was necessary because since the original complaint was filed, "things have happened that affect the disposition of this case."
In response to the filing, Too Much Media issued the following statement:
"Naked Rhino and NR Media have, with great fanfare, announced their motion to amend their complaint in the lawsuit pending against Too Much Media in federal court in New Jersey. They have obviously sought to gain from publishing false statements what they have not been able to gain after a year and a half of litigation.
"In either reviewing the proposed amended complaint, which our lawyers will vigorously oppose the motion to allow its filing, or any postings related to it, please remember the source: Naked Rhino and NR Media. Also, be aware of certain facts which have come out in the litigation.
- "Chris Petoski, the president of NR and NRM, in testimony has admitted cursing and hanging up on John Albright after John Albright telephoned him to find out why affiliates have not been properly paid.
- "NR's former technical director has testified that the accounting for affiliate rebills was flawed, not because of a problem with NATS, but because of his use of an erroneous password. Petoski was aware of this but refused to make required corrections.
- "Until this day, NR and NRM have not correctly paid affiliates what was owed them for rebills since well before the lawsuit started in August 2006.
- "NR and NRM have not set aside money to pay the affiliates when the litigation ends.
- "NR and NRM, in transferring its affiliate tracking software from NATS to Epoch's Hosted MPA solution, chose not to pay what Petoski testified was $5,000-10,000 for the software necessary to keep track of its obligations to affiliates and sales generated prior to the transfer.
- "Jason Tucker, a member of No Rivals Media, the successor to NR and NRM, has stated with regard to the proposed amended complaint: ‘I was not consulted nor do I think this makes any sense. My 2 cents: Someone in this case appears to be continuing the process of avoiding life and, well, certain responsibilities.'
"The proposed amended complaint was drafted by an attorney who has now moved to be relieved as counsel for NR and NRM after representing them for just six weeks. NR and NRM will now ask the court to allow them to have their fourth counsel, who just happens to be the counsel for Mansion Productions, the maker of Too Much Media's prime competitor, MPA3. Coincidence?
"In that proposed amended complaint, NR and NRM seek to join together two completely unrelated events: NR's and NRM's refusal to deal with their rebill problems in August 2006 and the security breach experienced by TMM in 2007. Too Much Media has been upfront about the occurrence of this security breach and has taken corrective measures.
"Be aware: No credit card information was taken from any servers, nor was any private data taken off Too Much Media's servers. No private data, in fact, rests on Too Much Media's servers. The NATS program and all of its data rests on client servers, with access by TMM limited to maintenance and support applications.
"Despite statements made in the proposed amended complaint, the security breach has not, apparently, continued, as TMM has received no related complaints since December.
"TMM is very much aware of its obligations to the industry. It was that feeling of obligation which led to John Albright's call to Chris Petoski in August 2006. Think of it: What did John Albright or TMM have to gain by picking a fight with NR, NRM or Potoski?
"It's that same feeling of obligation which has caused TMM, on a monthly basis since 2005, to deliver a CD containing the updated NATS source code and a list of current clients to its attorneys for safekeeping. In the unlikely event [that] anything happen[s] to TMM, its NATS customers are protected.
"Lawsuits are meant to be tried in courts. Because, however, NR, NRM and their friends have sought to use various media outlets to try to harm NATS and Too Much Media, a response was required. We can only hope and request that you be objective and fair in considering all related communications."
In response to the release, Mansion Productions issued the following statement: "Mansion is focusing on providing excellent service to its growing list of clients, and is not involved in any litigation."