July 11, 2012 | The Biz

Maleflixxx returned to original owners

A  long battle over control of Sureflix Digital Distribution (Entruphema), which operates  the gay video-on-demand service MaleFlixxx, seems to be over.

Porn giant Private Media Group (PMG) acquired Sureflix in October, 2009 from Eric Johnson, Erik Schannen and Michel Lozier, the Canadian founders of the company, who received almost 4 million shares of PMG stock in the deal. 

However, the original owners soon discovered that PMG was not the company they had thought it was.  A major lawsuit by another company (Consipio Holding BV)  that alleged embezzlement and fraud led to a  freefall in stock prices and the eventual placement of PMG in receivership. 

The former maleflixxx owners claimed PMG had made "material misrepresentations" (ie told lies)  to make the deal happen. PMG finally agreed to give back Sureflix. 

"Pursuant to the settlement agreement, the company transferred back to Messrs. Schannen, Lozier and Johnson all of the outstanding capital stock of Entruphema," PMG said in a statement.

Two months ago, PMG released its GameLink division to its founder Ilan Bunimovitz and a number of investors as part of another settlement. It had acquired GameLink in 2009, as well, under similar circumstances. 

PMG remains mired in legal issues, with the Consipio case still unresolved. 

Private Media Group Gives Up Sureflix as Part of Settlement [XBiz]