Oron Attorneys: File-Locker Site Can't Pay Vendors

Aug 3, 2012 2:30 PM PST

LAS VEGAS — Oron.com is down due it its inability to pay vendors, according to Oron attorneys.

"[T]he longer the site is inoperable, the greater the chances are that Oron may never recover," the file-locker's counsel said in court papers yesterday.

In those court papers, Oron is opposing Corbin Fisher's motion to expedite a hearing to enforce a settlement agreement, which Corbin Fisher contend was consummated.

Oron last month was hit with Corbin Fisher's $34.8 million suit, alleging the file-locker site is liable for rampant copyright infringement. Almost immediately, a federal judge in Las Vegas signed orders for a temporary restraining order effectively freezing all of its assets, with the exception of $100,000 for business expenses.

Yesterday, without warning, Oron.com disappeared from the Internet.

Oron told the court that Corbin Fisher's counsel has bombarded the file-locker site with so many legal motions, it has blown through its limited funds on legal fees.

"It has long been Oron’s belief that plaintiff’s true purpose in filing its complaint, its ex parte documents, and its subsequent motions was solely to destroy Oron," Oron attorneys wrote. "Indeed, [Corbin Fisher counsel Marc Randazza] stated in a July 4, 2012 email to Oron’s attorney: 'I prefer to kill Oron altogether and keep all $3 million.'”

Oron attorneys said that because of Corbin Fisher's relentless campaign to incur huge legal bills and because it was provided only $100,000 for business expenses by the court, it can't pay vendors, including its host, LeaseWeb.

"This combination created extraordinary financial stress and  achieved the inevitable — Oron’s website has been shut down and, most likely, Oron will lose a majority of its customers," Oron attorneys said.

"[A]llowing that [temporary restraining order] to remain in place any longer than necessary only increases the likelihood that Oron will be unable to salvage and restore at least some part of its business. Oron expects that when it is heard on the facts and law at the preliminary injunction hearing, an injunction will be denied and the TRO vacated."

Oron, in its motion, supports an expedited hearing of the settlement motion only if the hearing on the preliminary injunction is advanced to the same hearing time.

"Each hearing costs money and it will be impossible for Oron to continue to defend itself without further funds," Oron attorneys said. "Forcing Oron to do multiple hearings while not allowing sufficient funds to pay counsel would be unjust."

Meanwhile, Oron filed a separate motion yesterday opposing a request for an evidentiary hearing Thursday at the same time a hearing on a preliminary injunction will he heard.

"[P]ermitting [Corbin Fisher] to present new or additional evidence at the hearing would deprive Oron of a fair opportunity to oppose Liberty Media’s preliminary injunction motion," Oron attorneys said.

Corbin Fisher also has asked the court to include live testimony at the hearing at U.S. District Court in Las Vegas on Thursday.

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