January 25, 2017 and Its Executives Named in Four New Lawsuits in Washington, California, Texas, and Alabama

The lawsuits are believed to be the first cases in the country where the company’s CEO and owners are named as defendants.

Four new lawsuits were filed today against the owners and operators of, including the company’s CEO, Carl Ferrer, and two of the website’s long-time owners, James Larkin and Michael Lacey.


The plaintiffs in each lawsuit allege they were teenager girls when they were sold for sex on the website by sex traffickers.  Two plaintiffs jointly filed suit in Washington, one plaintiff filed suit in California, one plaintiff filed suit in Texas, and one plaintiff filed suit in Alabama.

Jason P. Amala, a Seattle attorney who jointly represents four of the five girls, believes the four lawsuits are the first civil claims to be filed against Ferrer, Larkin and Lacey.  In the lawsuits, the girls allege that Ferrer, Larkin, and Lacey are liable because they knew they were profiting from illegal sex trafficking. On Tuesday, the three men appeared in court in California in response to 39 criminal counts for allegedly facilitating prostitution and sex trafficking.

Amala believes the lawsuits are the first cases to be filed since January 9, 2017, when the company purported to shut down the “escort” section of its website due to “censorship” by the United States government.  The “escort” section was shuttered within hours after the United States Senate issued a scathing report about the company’s alleged role in online sex trafficking.

The next day, Ferrer, Larkin, and Lacey appeared before a panel of U.S. Senators and refused to answer any questions.  Instead, each invoked their Fifth Amendment right against self-incrimination.  The men were joined by the website’s Chief Operating Officer, Andrew Padilla, and corporate counsel, Elizabeth McDougal, who also refused to testify and invoked the Fifth Amendment.

The defendants named in the lawsuits include a number of U.S. and foreign companies that were allegedly involved in running the website or were used to conceal its profits.  Some of the lawsuits allege the companies are liable because they profited from the website “even though [they] knew those profits were derived from illegal conduct.”

In response to prior lawsuits, the website has asserted it is immune from suit under a federal law known as the Communications Decency Act (“CDA”).  The CDA provides websites immunity from suit for content posted by third parties so long as the website does not help create or develop the content.  Websites also have immunity if they edit content, but only if the content is edited in good faith.

According to Amala, the four lawsuits are being filed now because of the Senate report:  “For years the website has publicly claimed they were trying to remove sex ads.  That was the company line, but the Senate report shows that was not true.  The report details how the website, at the direction of its top executives, was systematically editing sex ads to make it less obvious that they were for sex.  They then posted the sanitized sex ad for a fee and kept the profits.”

Some of the complaints cite internal company emails that the plaintiffs claim support their allegations.  In one, Ferrer said it would be “too harsh” to ban advertisements that contained words or images that indicated the ad was for sex.  Instead, Ferrer said it was “[b]etter to edit by removing bad text or removing bad language” so that users could “adjust.”

The complaints also quote from deposition testimony that Amala obtained from a former employee of  In his deposition, the former employee agreed that his job was “to basically sanitize ads for prostitution.”  The complaints allege that the employee “would then post the sanitized ad, even though he knew the ad was a person who was trying to sell sex for money.”

The plaintiffs allege they were advertised on the website at various times between 2013 and late 2015.  According to the Senate report, generated $135 million in revenue in 2014, and the vast majority of that revenue was from sex ads.

Washington:  The Washington lawsuit was filed on behalf of two teenage girls who are identified as R.O. and K.M.  R.O. alleges she was 14 to 15 years old, and K.M. alleges she was 16 years old, when they were sold for sex on the website.  Each girls alleges she was sold for sex in the greater Seattle area.  R.O. alleges her ads appeared on the website from October 2014 until December 2015.  K.M. alleges her ads appeared in early 2015.  Both girls allege they were repeatedly sexually abused as a result of being advertised for sex on the website.

California:  The California lawsuit was filed on behalf of a teenage girl who the complaint identifies as “Jane Doe.”  Jane Doe alleges she was 15 years old when she was sold for sex on the website.  Jane Doe alleges she was sold for sex in Riverside County, California.  Jane Doe alleges her ads appeared on the website for weeks in August 2015.  Jane Doe alleges she was repeatedly sexually abused as a result of being advertised for sex on the website.

Texas:  The Texas lawsuit was filed on behalf of a teenage girl who identified as “J.M.”  In her complaint, J.M. alleges she was 15 to 16 years old when she was sold for sex on the website.  J.M. alleges she was sold for sex in Hawaii, but filed suit in Texas because Dallas, Texas, was the principal place of business for the website during the time she was abused.  In October 2016, authorities raided the Dallas offices of the website after its CEO, Carl Ferrer, was arrested.  J.M. alleges her ads appeared on the website from March 2015 through September 2015.  J.M. alleges she was repeatedly sexually abused as a result of being advertised for sex on the website.

Alabama:  The Alabama lawsuit was filed on behalf of a woman identified as “K.R.”  In her complaint, K.R. alleges she was 17 years old when she was sold for sex on the website.  K.R. alleges she was sold for sex in Houston County, Alabama.  K.R. alleges her ads appeared on the website between May 2013 and August 2013.  K.R. alleges she was repeatedly sexually abused as a result of being advertised on the website.

The four lawsuits are not the first lawsuits to be filed against the website.  In 2012, Amala and his law firm, in conjunction with Tacoma lawyer Erik Bauer, filed a separate lawsuit in Washington on behalf of three minor girls who allege they were sold for sex on the website in 2010.  The website moved to dismiss the case, citing the CDA, but the trial court denied the motion.  In October 2015, the Washington Supreme Court upheld the trial court’s decision and concluded the plaintiffs should be allowed to move forward with their case so they could try to prove their allegations that the website was actively involved in editing their ads.  That case is currently scheduled to begin trial in Pierce County, Washington, in May 2017.

Amala believes these are important test cases regarding the CDA:  “I am proud of our clients for standing up for themselves and for thousands of other women and children who were trafficked for sex through this website.  The website has gone to great lengths to conceal its involvement in sex trafficking, but the truth is finally coming out.  Congress did not intend to give immunity to a website that created an online marketplace for sex trafficking, let alone a website that actively sanitized sex ads under the cover of trying to prevent sex trafficking.”

March 15, 2014

J.N., et al. v. Boy Scouts of America, et al. – Confidential Settlement

Four men have settled their claims against the Boy Scouts of America for sexual abuse they suffered as young boys between 1979 and 1986 at Fire Mountain Boy Scout Camp by the camp’s Aquatics Director, Charles S. Grewe. Since at least 1979, the Boy Scouts knew Grewe was a pedophile based on complaints of abuse made by other young scouts. Almost every year between 1979 and 1987, young boys at Fire Mountain camp reported to camp leaders that Grewe sexually abused them at the swim beach. Similarly, in 1981, young boys from Troop 41 in Lake Stevens, WA, reported that that Grewe sexually abused them during Scout meetings. That information was immediately reported to the Scout Executive of the Evergreen Area Local Council, but Grewe, who was heavily decorated and considered a “respected member of the Scouting community,” was allowed to remain in various leadership positions in Scouting, including his close work with children at Fire Mountain Scout camp. Meanwhile, outside of Scouting, Grewe worked as a bus driver for various elementary schools in the Everett School District. Finally, in 1988, Grewe was arrested and convicted for numerous sexual offenses against children after he was found to have sexually abused a number of boys and girls on the school bus. In 1988, the Boy Scouts of America met with Grewe to discuss the numerous allegations of abuse, and finally suspended him from Scouting, action they should have taken almost ten years earlier.

4 Tents set up at Camp

  • Settlement: Confidential
March 11, 2014

R.R. v State of Washington DSHS – $3,000,000 Settlement

Great result for our client, R.R. $3,000,000 settlement with DSHS for years of repeated rape and child sexual abuse at the hands of her abuser, the father of her 2 children. CPS had many chances to intervene in her horror story, but neglected to follow their own procedures. Even after her abuser kidnapped her during CPS’ involvement, the agency failed to contact law enforcement or otherwise take action. As a result, she was raped and abused for over a decade while living in hiding throughout Idaho and Utah.
Accused Child Abuser

December 5, 2013

McLean v. City of Kelso – $375,000 Settlement

PCVA attorneys settled with 4 public agencies over the wrongful death of confidential police informant, Jeremy McLean. Jeremy was an undercover operative for law enforcement in Southwest Washington. After a successful sting netted one of the area’s biggest heroin dealers, Jeremy was outed as an informer. The dealer put a bounty on Jeremy’s life. And just two weeks before Jeremy was set to testify for the prosecution, the dealer executed Jeremy with four shots to the head. Jeremy’s family contended that the police agencies he was working with knew about the threats to Jeremy’s life but did nothing to protect him. As a result, Plaintiffs contended law enforcement created an unconstitutional danger to Jeremy and were negligent in his death.
Jeremy McLean Helped the Police Convict Criminals

  • Settlement: $375,000
Cause Number
  • Clark County, 12-2-00851-9
  • Wahkiakum County
  • Cowlitz County
  • Cowlitz-Wahkiakum Narcotics Task Force
  • Cowlitz County Offender Services
  • City of Kelso
  • City of Longview
News Coverage
December 4, 2013

Confidential v. State of Washington (DSHS) – $425,000 Settlement

Darrell and Loren Cochran represented a family in a case against the WA State Department of Social and Health Services for negligent supervision of a convicted rapist. The child victim was sexually molested in her home hundreds of times by a juvenile parolee who was negligently allowed to be left alone with minors, in spite of a court order stating he was barred from “unsupervised contact with anyone 2 years younger” than himself. DSHS performed a home visit, saw that minor children were also living in the residence, and yet failed to remove the offender or even warn the family of the parolee’s previous crimes.Generic City Jail

  • Settlement: $425,000
Cause Number
  • Court of Appeals, Div II (WA): 44065-2-II
  • Pierce County: 11-2-08294-1
October 24, 2013

Webster v. Bainbridge Island School District – $300,000 Verdict

Tom Vertetis and Liz Calora have won a verdict in a private trial for their client, B.W. against the Bainbridge Island School District for negligence. B.W., then an autistic 14-year-old, was bullied and sexually harassed repeatedly and school administrators ignored concerns from parents and teachers for months, until the police became involved. “This is an important verdict for families with disabled children in the public school system,” said plaintiffs’ lead trial attorney Tom Vertetis. “This sends a clear message that bullying of any children, let alone our most vulnerable children is clearly unacceptable. The criminal trial of one of the perpetrators indicated the victim was bullied over 75 times with separate incidents of harassment.Bainbridge Island School District

  • Settlement: $300,000
Cause Number
  • Kitsap County: 10-2-00346-2
  • Bainbridge Island School District
News Coverage
September 6, 2013

Jane Doe v. Olympia School District – $750,000 Settlement

Darrell Cochran and his team have settled a second lawsuit against the Olympia School District for child sexual abuse of a girl by bus driver, Gary Shafer. Shafer admitted to sexually assaulting at least 30 children aboard Olympia School Buses. He pled guilty in August 2011 to molesting three kindergarten bus riders and is now serving 15 years in prison. Gary Shafer “rode-along” other bus drivers’ routes to sexually groom his victims and the Olympia School District did not stop that from happening.
Olympia School District Bus

  • Settlement: $750,000
Cause Number
  • Thurston County: 11-2-01970-2
May 13, 2013

Larson v. Ecoflame – $5,375,000 Settlement

Jason Amala and his father, Oregon attorney Carl R. Amala of Harris Wyatt & Amala, LLC, represented Ms. Larson in a personal injury suit over an injury caused by an exploding gel fuel product, called Ecoflame. The “refillable,” “non-explosive” gel fuel product shot flaming gel out of the bottle as someone refilled an Ecoflame can, and Ms. Larson suffered second and third degree burns on approximately one-third of her body. Ms. Larson, a retired teacher of human development, hopes news of the settlement will prevent other people from being injured. Nine manufacturers of similar gel fuels have recalled their gel fuel products.Ecoflame Fuel Gel

  • Settlement: $5,375,000
Cause Number
  • Marion County, OR: 11C18520
  • Ecoflame International, Inc.
News Coverage
Other Links
March 23, 2011

Quincy Reynolds v. Franciscan Health Systems-West, et als.

Tom Vertetis represented an eighty-four (84) year old woman left with paraplegia and a resulting grade IV decubitus ulcer following post-operative complications and hypovolemic shock. The matter reached settlement for a confidential amount.
Hospital Interior

  • Settlement: Confidential
Cause Number
  • Pierce County: 09-2-12719-6
  • Franciscan Health Systems-West, d/b/a St. Joseph Medical Center, et als.
August 10, 2010

Larson v. WA State Department of Corrections – $4.25M Settlement

Darrell L. Cochran and his client, Kathie Lee Larson settled their case with the Washington State DOC for $4,250,000.  Kathie was run down by a mentally-ill DOC parolee in a stolen car, causing life-altering brain injuries.

Kathie Larson suffered a number of traumatic injuries, including brain damage, when Aiyisha Gillespie allegedly ran her down with a stolen car in June 2008. Larson was crossing a street in downtown Tacoma at the time. She was comatose for three weeks and hospitalized for six months.

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