Shareholder Suit Asks for Injunction in New Frontier Deal

DENVER — A suit that seeks class-action status has been filed against New Frontier Media and LFP Broadcasting by a shareholder who alleges that LFP's proposed $33 million takeover of the company is "grossly inadequate."

Plaintiff Craig Telke's suit, filed at U.S. District Court in Denver yesterday, seeks an injunction over the proposed deal or rescinding it if the deal is consummated by its scheduled closing date of Nov. 27, as well as damages and attorneys fees.

The suit also names as defendants New Frontier Media Chairman Alan Isaacman and three company board members.

Telke, who alleges breaches of fiduciary duties "by means of an unfair process and for an unfair price," said that it was "unsurprising that Isaacman’s ascension to a leadership position within the company was concurrent with the sales process sharply favoring Flynt, and ending in a deal with the Flynt-controlled LFP Broadcasting."

The suit said that Isaacman, who was installed as New Frontier Media's chairman of the board in September, has a long-time relationship with LFP founder Larry Flynt, stemming back to 1988 when Isaacman represented him in the U.S. Supreme Court case between Flynt’s Hustler Magazine and Jerry Falwell.

Telke's accusations specifically allege that the defendants breached their fiduciary duty by agreeing to lock-up provisions that would dissuade other bidders by employing a strict no-solicitation provision that prevents New Frontier Media from soliciting other potential acquirers, a provision that provides LFP Broadcasting with three days to match any competing proposal in the event one is made and a provision that requires New Frontier Media to pay LFP a termination fee of $1 million in order to enter into a transaction with a superior bidder.

Last month, New Frontier Media announced that the adult transactional TV service had signed a definitive agreement to be acquired by LFP Broadcasting for $2.02 per common share in cash up front, or approximately $33 million, plus a contingent cash payment right for each common share.

LFP and New Frontier Media officials did not immediately respond for XBIZ comment on Friday.

View shareholder suit

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Jane Wilde, Lily LaBeau Star in Latest From New Sensations

Jane Wilde and Lily LaBeau star in the latest release from New Sensations.

Hailey Rose Toplines Latest 'Stacked' From Hard X

Hailey Rose headlines the 14th volume of "Stacked," from XEmpire studio brand Hard X.

Hentaied Debuts Final Rae Lil Black Scene

Hentaied has released recently retired performer Rae Lil Black's final scene, titled "The Monster Slayer."

Arcom Reports Age Verification Enforcement Actions Against 5 Adult Sites

French media regulator Arcom released a statement Tuesday detailing recent actions to enforce age verification rules as set forth under France’s Security and Regulation of the Digital Space (SREN) law.

Ryan Keely Fronts Latest From New Sensations

Ryan Keely stars with Victor Cruz in the latest release from New Sensations.

Zariah Aura Stars in Latest From Transfixed

Zariah Aura stars with Kenna James in the latest release from Transfixed, titled "Feeling Her Way."

Brittney Kade Fronts 'Couples Loving Trans 2' From GenderX

Brittney Kade stars with Adira Allure and Sage Roux in the second volume of GenderX Films' "Couples Loving Trans," directed by Jim Powers.

Eve Sweet Makes Her Brazzers Debut

Eve Sweet has made her Brazzers debut alongside Xander Corvus in “Horny Gymnast.”

Penny Barber: The Fit Mommy Domme Reveals Her Auteur Side

When Penny Barber took home the 2025 XMAs trophy for MILF Performer of the Year, she was 39 — but she’d already been telling people she was a MILF for almost 20 years.

Summer Starz Makes Her WIFEY Debut

Creator Summer Starz has made her debut for Vixen Media Group (VMG) studio imprint WIFEY alongside her husband Dean Darkhole and Sheem.

Show More