Last Wednesday, Girls Gone Wild, the adult entertainment franchise with the memorable late night infomercials filed for Chapter 11 bankruptcy protection. According to reports, the company filed for bankruptcy protection in an attempt to prevent Wynn Las Vegas from collecting on a debt worth $10.3M as part of a lawsuit against Girls Gone Wild founder Joe Francis. The debt stems from an award against Francis in which a jury determined that Francis’s claim that Steve Wynn threatened to kill him arose to defamation.
Francis has had his share of legal troubles over the years including:
1. In 2003, officials attempted to halt Girls Gone Wild filming. Francis sued claiming violation of his 1st Amendment rights. During the same period Francis was arrested on racketeering charges. Although some of the charges stemming from this case were dismissed, Francis eventually pled guilty to record-keeping violations and was fined $1.6M.
2. A suit in 2007 where Ashley Alexandra Dupre alleged that Mr. Francis’s company used her images without her permission. Ms. Dupre dropped the suit when Francis showed footage where she agreed to be filmed.
3. Also in 2007, Francis was indicted by a federal grand jury on two counts of tax evasion. Francis initially pled not guilty, but in September 2009 pled guilty to lesser misdemeanor counts. Mr. Francis ended up paying $250,000 restitution to the IRS as a result of the case.
4. In 2008, Girls Gone Wild was sued by four women who alleged the company filmed them while they were underage. The jury found in Francis’s favor.
5. In February 2012, a Nevada Judge awarded Steve Wynn $7.5M for the defamatory statements mentioned earlier. In September of that same year, a jury awarded Wynn $20M in a related slander case. However, two months later another Nevada Judge reduced Wynn’s award.
In short, this is just the latest of Francis and Girls Gone Wild’s legal troubles. However, he remains defiant. A Girls Gone Wild spokesman claims that the company remains strong financially and that “the only reason Girls Gone Wild has elected to file for this reorganization is to re-structure its frivolous and burdensome legal affairs.” The spokesman further stated that “this Chapter 11 filing will not affect any of Girls Gone Wild’s domestic or international operations. Just like American Airlines and General Motors, it will be business as usual for Girls Gone Wild.” We shall see if the spokesman is correct or if this portends something a bit more serious for Girls Gone Wild. Check our LawBlog for further updates on the case.
Here at MPS, 0ur attorneys represent clients in the Denver, CO, Portland, OR, and Colorado Springs, CO areas where we specialize in obtaining a fresh financial start for you or your company. Contact us today to schedule a free consultation.
