FriendFinder Defeats Investment Firm’s Appeal Over Debt Terms

FriendFinder Networks Inc. and an affiliated company offered debt securities to an investment firm in a private exchange not protected by securities law, the Second Circuit ruled.

Chatham Capital Holdings Inc. and a related entity therefore can’t sue FriendFinder, which operates adult entertainment, social networking, and online dating sites, for allegedly reducing the debt instruments’ payment terms, the appeals court said Wednesday. A no-suit clause in the contract applies and bars the claims, Judge Richard C. Wesley said.

• FriendFinder allegedly implemented the change “to strong-arm Chatham into selling its own stake back to FriendFinder at a steep discount,” according to ...