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Adult Friend Finder's acquisition by Penthouse was the subject of a 2007 lawsuit by Broadstream Capital Partners, a merchant bank that assists with mergers, alleging Penthouse breached a 2006 contract by purchasing the company without obtaining Broadstream's consent, a claim Penthouse denies.
On November 13, 2016, it was reported that a database of usernames, e-mails, and passwords had been breached and leaked from Adult Friend Finder and other Friend Finder Networks websites.
According to the complaints filed, the company has a practice of continuing to bill customers even after they have cancelled their service.
Former employees of the company have claimed that this is their standard policy and not the result of errors.