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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.
These employees have stated that the majority of customers do not notice the charges for many months.
In 2007, Adult Friend Finder settled with the Federal Trade Commission over allegations that the company had used malware to generate explicit pop-up ads for the service on computers without user consent.