OPW - A legal battle is unfolding between Andrew Conru, the founder of Friend Finder Networks (FFN), and his long-time friend and subsequent CEO of FFN, Jonathan Buckheit, over the ownership of the company. In 2013, Conru returned as CEO to rescue FFN from bankruptcy and a stagnation in innovation that occurred under Penthouse's ownership. By 2015, he had passed the CEO baton to Buckheit. However (according to Conru's complaint) FFN continued to struggle. Conru brokered an agreement to take back FFN by acquiring (according to Conru's complaint) a majority of its senior debt and equity in 2021. Foreseeing his limited availability due to philanthropic efforts, Conru entered into a complicated Purchase Agreement with Buckheit, including a Call Option Agreement (COA). The COA allowed Conru to purchase the remaining unvested shares at a set price should he decide to do so by exercising a "Call Right."
(According to Conru's complaint) Conru initiated the "New Community," aiming to create a "Facebook for Adults" integrated within FFN. Conru attempted to exercise his Call Right from the COA with a $1K check in 2023, Buckheit returned the check, claiming the option wasn't exercised in a reasonable timeframe.
The dispute escalated to a lawsuit filed by Conru against Buckheit in Aug 2023 in the Northern District of California, seeking to regain control of FFN. Buckheit's motion to dismiss the lawsuit was denied by Judge Freeman in Mar 2024, moving the case to Alternative Dispute Resolution scheduled for Apr 24, 2024.
by Debbi R - A long-time FFN User