L.A. Phone Sex, Text Sex Operation Hit With Federal Lawsuit

Nov 26, 2012 4:00 PM PST

LOS ANGELES — Operators of a San Fernando Valley phone sex service have been hit with a federal lawsuit seeking class-action status for allegedly serving up unsolicited text-message ads for phone sex and sex texting services to cellphone users.

Four affiliated companies based at the same Erwin Street address in Woodland Hills, Calif. — Network Telephone Services Inc., Decade Communications Inc., Frontier Credit Inc. and American Operator Services Inc. — are targeted in the suit, which seeks unspecified damages and a restraining order for civil charges over allegedly violating the Telephone Consumer Protection Act of 1991.

Ten unnamed John Doe defendants, presumably the companies' operators and partners, also are named to the suit.

Paul Gannon, a Colorado man named as plaintiff in the suit, says that beginning in 2009 the defendants "directed the mass transmission of wireless spam to cellphones nationwide of what they hoped were potential customers to defendants' phone sex services."

Gannon in the suit said that as recently as September his cellphone's text messaging system rang, offering a text message reading, "Hot honeys r ready to pleasure u and make u cumm. $25 credit on your first call! Call 800-999-2428. Want to SEXTEXT, Rply A! Rply END to be remvd. (18+.$)."

Gannon said that the four companies and its operators have acted in concert, breaking federal statute 47 U.S.C. § 227, which prohibits unsolicited voice and text calls to cellphones, among other commercial restrictions.

Gannon's suit said that there are "thousands" of  potential similar plaintiffs who were sent the sexually explicit messages without their consent.

The suit, filed at Los Angeles federal court, seeks an order certifying the class, actual and statutory damages, an injunction over the practice and attorneys fees.

The claim said that treble damages should be applied in the wireless spam case.

Attorney Michael Daudt of Seattle-based Terrell Marshall Daudt & Willie, who represents plaintiff Gannon, declined comment to XBIZ.

XBIZ was unable to reach officials from Network Telephone Services Inc., Decade Communications Inc., Frontier Credit Inc. and American Operator Services Inc.

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