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As of January 17, 2010, Friend Finder Networks had a negative net worth equal to 8 million, million in cash on hand and 0 million in liabilities.

The company had also indicated that it lacked existing cash or cash from operations to repay a .5 million debt that was due July 31.

Defendant Friend Finder Networks, Inc.'s wholly-owned subsidiary owns and operates the website Adult Friend Finder ("AFF"), an adult online dating site.

Users of the website are required to register in order to use the site but otherwise may use the website for free.

Friend Finder Networks (formerly Various, Inc.) is an American internet company founded in 1996 by Andrew Conru.

Although section four of the FAA provides for the filing of a motion to compel arbitration, courts have held that a motion to dismiss under Rule 12(b)(1) for lack of subject matter jurisdiction "is a procedurally sufficient mechanism to enforce [an] [a]rbitration [p]rovision." GT Sec., Inc.

The FAA reflects a strong policy in favor of arbitration.

When reached, Friend Finder Networks confirmed the site vulnerability, but would not outright confirm the breach."Over the past several weeks, Friend Finder has received a number of reports regarding potential security vulnerabilities from a variety of sources.

Immediately upon learning this information, we took several steps to review the situation and bring in the right external partners to support our investigation," said Diana Ballou, vice president and senior counsel, in an email on Friday."While a number of these claims proved to be false extortion attempts, we did identify and fix a vulnerability that was related to the ability to access source code through an injection vulnerability," she said."Friend Finder takes the security of its customer information seriously and will provide further updates as our investigation continues," she added.

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