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June 29, 2016

X-Art's Parent Company Sues Florida Law Firm

LOS ANGELES—Malibu Media, parent company of X-Art, has filed a federal lawsuit against the Miami-based law firm Lipscomb Eisenberg & Baker for alleged breach of fiduciary duty, among other claims. Malibu Media alleges the firm was negligent and engaged in fraudulent business practices related to its handling of the company's copyright enforcement program, according to a report by Law360.com. Malibu also accused the firm of disclosing information protected under attorney-client privilege in a lawsuit the firm filed June 10 against the company in Florida state court; it also requested that the California court order an accounting of the copyright enforcement program, claiming the firm refused to provide full financial information, the report said.  “The amount of money due from defendants, and each of them, to plaintiff is unknown to plaintiff and cannot be ascertained without an accounting of all funds received and costs and expenses paid pursuant to the enforcement program from 2012 to the present," Malibu said in the suit. Representatives from Malibu were not available for comment at post time. Keith Lipscomb told AVN Wednesday the federal suit is "a compulsory counter claim to the Florida state suit" and "is nothing more than a disgusting attempt to gain leverage in the Florida state case LEB brought against Malibu, [its current counsel Pillar Law Group] and two Florida entities." He also noted that the Florida suit is sealed because it contains allegations of malfeasance, adding he expects the federal suit will be dismissed "under the doctrine of abstention in deference to the Florida case." According to Malibu's complaint, the companies' relationship started in late 2011 when LEB contacted Malibu and offered its services to enforce its copyrights.

 
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