AIM Records Destroyed in Midst of Bankruptcy, Class-Action Suit

WOODLAND HILLS, Calif. — Patient files and financial records used during the business operations of AIM Medical Associates were "willfully destroyed," a bankruptcy trustee says.

The trustee assigned to oversee the AIM bankruptcy said that all of the testing clinic's records, stored at a Public Storage locker in Sherman Oaks, Calif., were destroyed in March.

AIM, the primary performer-testing facility for years led by former porn star Sharon Mitchell, filed for Chapter 7 bankruptcy in May 2011, listing $3,500 in assets and $371,000 in liabilities, primarily owed to laboratories it worked with and legal counsel.

AIM's patient files and financial records were being stored at the locker in preparation for litigation targeting adult entertainment producers who used the clinic and signed indemnity agreements with the clinic, the trustee says.

The pending legal action against adult producers centers around an unnamed performer who filed a class-action claim in 2011 against AIM for violating the California Medical Information Act, unfair and deceptive trade practices and the public disclosure of private facts.

"The complaint alleged that [AIM], in connection with the online portal ... violated numerous federal and state laws by disclosing the test results to the producers without the necessary consent/release/waiver of the performers," the trustee says.

The trustee, in a motion to the bankruptcy court, said that he was to employ special counsel to sue adult producers using AIM's database based upon the indemnity agreements.

Identities of an untold number of targeted producers were not revealed in the trustee's statements to the court, but the trustee is considering an XBIZ request to acquire that information.

The funds anticipated from settlements or judgments would be substantial to pay off performer claims because the trustee anticipated that punitive damages would be available based upon the "willful violation of state and federal laws."

AIM several years ago created an online database to provide producers performer-test results, but the clinic did not have consent from the adult actors, the trustee said.

To go online and see performer-test results, "producers paid a fee and entered into an indemnity agreement whereby the producers agreed to indemnify [AIM] for any claims resulting from the unlawful/unintended disclosure of confidential test results," the trustee said.­­­­­­­

"These documents, including the indemnity agreements, were maintained by AIM as part of its books and records and were placed in storage at the facility owned, maintained and operated by [Public Storage]."

With the patient files and financial records now destroyed, the trustee anticipates that a substantial cost will be incurred in re-creating the destroyed records.

The trustee has asked for a $1 million bond be put up by Public Storage because employees, specifically the district manager, at the facility were aware of the trustee's earlier order that the contents of the locker were not to be removed or destroyed.

The trustee has asked the bankruptcy court to hold Public Storage in civil contempt and order the storage giant to compensate for re-creation of the evidence.

Public Storage counsel did not return XBIZ calls for comment.

A hearing over the bond issue will be held at U.S. Bankruptcy Court in Woodland Hills, Calif., on Oct. 23.

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

Trump Administration Issues Executive Order Against 'Debanking'

The White House on Thursday issued an executive order limiting financial institutions’ ability to restrict access to financial services for people or groups involved in lawful industries, a longtime goal of adult industry advocates and stakeholders.

Millie Morgan Stars in Latest From MILFY

Millie Morgan stars with Hollywood Cash and Sheem in the latest release from Vixen Media Group (VMG) studio imprint MILFY, titled “Hot Blonde MILF Gets Tag-Teamed.”

Go.cam Launches Free Age Verification Solution, Anti-Fraud Features

Go.cam has announced that its age verification solution is now free with updated anti-fraud and identity protection features.

Mick Blue Dishes on Role in BET Plus Crime Flick 'Dutch III'

Decorated performer Mick Blue has stepped outside of the adult industry to appear in "Dutch III: International Gangster," a new mainstream crime movie currently streaming on BET Plus.

Blake Blossom, Millie Morgan Topline 'Massage Seductions 4' From Sweetheart Video

Blake Blossom and Millie Morgan headline the fourth volume of “Massage Seductions” from Mile High Media studio imprint Sweetheart Video.

Elegant Angel Rolls Out 'Performers of the Year 2025'

Elegant Angel has kicked off its annual "Performers of the Year" campaign with weekly double penetration scene releases as part of "DP Tuesdays."

Adult Time's 'How Women Orgasm' Series Spotlights Sarah Arabic

Sarah Arabic is spotlighted in the latest installment of "How Women Orgasm," from Adult Time studio banner Up Close.

Florida AG Sues EU-Based Adult Companies for Failing to Age-Verify Users

Florida Attorney General James Uthmeier filed a lawsuit Monday with the 12th Judicial Circuit Court of Florida against five EU-based adult companies for allegedly failing to require age verification before allowing access to adult content.

SkyPrivate Launches 'Telegram Pay-Per-Minute' Feature

SkyPrivate has launched a new pay-per-minute (PPM) private show option on Telegram.

Jessica Aaren, Wendy Raine & Harley Love Star in 'Freakier Friday' Parody From TeamSkeet

Jessica Aaren, Wendy Raine, and Harley Love star with Sage Roux in "I’m Still in My Stepdaughter's Body, Fuck Us Again," the latest parody release from TeamSkeet.

Show More