A Dublin-based subsidiary of the operator of Pornhub is a co-defendant in a case where the group has agreed to pay €105.5m to settle a legal class action in the US concerning allegations of possession of child abuse images and sex trafficking.
That is disclosed in new accounts for Aylo Billing Ltd, which continues to route hundreds of millions of dollars in revenues through the Dublin unit for the management of online memberships for certain websites.
Pornhub is the world’s most visited adult entertainment website and new accounts signed off on 9 September show that Aylo Billing Ltd almost doubled pre-tax profits to $13.35m in 2022 as revenues declined by 16% from $300.82m to $251.66m.
Aylo Billing has its registered office here at Baldonnell Business Park in D22 and a business address at Nicosia, Cyprus.
A note attached to the new accounts states that Aylo Billing has entered a Stipulation of Settlement to resolve an Alabama court class action.
The note states that in the case, plaintiffs alleged that the group benefited from a sex trafficking venture in violation of the US Trafficking Victims Protection Reauthorisation Act and further allege that the Group received, possessed and distributed images of child abuse.
The note states that the proposed resolution would be without admission of liability by the company or affiliated undertakings.
The note states that the $120m settlement comprises an initial payment of $25m followed by six annual instalments of $15.833m over the following six years.
The initial payment of $25m has been made into the settlement fund.
The note also states that the settlement also includes certain non-monetary relief, including operational commitments relating to content verification, moderation, training, reporting and independent external audits.
Aylo Billing has been co-named as a defendant in the case and has been indemnified by Group companies for the matter disclosed and as a result no provision is required in the financial statements.
The settlement remains subject to preliminary and final court approval and other conditions set out in the Stipulation of Settlement, including a notice and objection period for class members.
Final approval of the settlement, the note states, is uncertain, and if the settlement is not approved, the company intends to continue to defend the actions.
The accounts state that the firm has also been named as a co-defendant in a ongoing legal matter where a class action lodged in California alleging that the company and affiliated companies violated the US Video Privacy Protection Act (“VPPA”) by sharing user data without consent.
The Aylo Billing website states that today Aylo “is a tech pioneer offering world class adult content platforms”.
It states that “we are leaders in implementing safety and security policies, ensuring that our properties remain among the safest platforms online for our communities and are at the forefront of combating illegal content”.
The notice adds that “these comprehensive measures for verification, moderation and detection include only users who have been ID-verified and authenticated by a third-party digital ID company are able to upload content to Aylo content sharing platforms.
Reporting by Gordon Deegan
