OnlyFans Lawsuit Update: Major Claims Dismissed, Industry Safe

A few months ago, I wrote a detailed breakdown of the class-action RICO lawsuit against OnlyFans and a handful of big agencies filed by who I called "The Goon Squad"—a collection of disgruntled porn addicts suing OnlyFans and a list of high-profile agencies for everything from wire fraud to racketeering.

These are MAJOR charges that carry fat penalties, and if any of them made it to trial, there was a good chance that OFM as we know it would be over, as it would make third-party chatting—the entire backbone of the industry—crumble.

Understandably, a lot of people panicked. Agency owners were asking me if they needed to move to Dubai or liquidate their assets. Creators were asking me if they needed to hire lawyers preemptively or were going to get sued too.

Now in that previous analysis, I told everyone to calm down. I predicted that the claims were massively inflated, the legal theories were extremely weak, and that this case was unlikely to ever see a day in court, but that it would still probably take a year or two to shake out.

Well, there have been major changes to this case since then. So, I'm going to do a post-mortem on my own analysis. I'm going to tell you exactly what I got right, what I got wrong, and most importantly, how this update to the case might impact your business.

If you are an agency owner, a model, or just someone following the OnlyFans business, you need to understand what just happened, because it might just dictate the future of OFM.

Legal Disclaimer: I am not an attorney and this is not legal advice. The information shared here is based on publicly available sources and is accurate to the best of my knowledge at the time of writing. If you need legal guidance, please consult a qualified lawyer licensed in your jurisdiction.

Part 1: The Good News (Plaintiff's Lawyers Made Epic Mistakes)

I'll save the bad news for the last section. Let's talk good news first.

Recent court filings and rulings from mid-December had a huge impact on this case. The good news is, those rulings are overwhelmingly in our favor. The judge has spoken, fines have been levied, and significant portions of the lawsuit have been completely thrown out.

In my previous breakdown, I mentioned a development where the defense—OnlyFans and the agencies—accused the plaintiffs of using AI to write their legal briefs.

Turns out, this was 100% true, and the plaintiff's counsel is even MORE incompetent than previously imagined.

The AI Hallucination Disaster

Hagens-Berman, the law firm representing the subscribers (again, we'll call them the Goon Squad), has been fined by the judge. It's not unusual in cases like this for big firms to contract out grunt work, and unfortunately for Hagens-Berman, they made a very poor decision on their contractors.

One of their co-counsel, one Celeste Boyd, used ChatGPT to draft opposition to motions to dismiss—and failed to check if the case law referenced by ChatGPT was real.

Now, using AI isn't illegal. I use AI. You use AI. But when you are a lawyer in federal court, you cannot use AI to invent case law that doesn't exist. The "hallucinations" I referenced in my last analysis were not minor typos. They were fully fabricated legal precedents that got submitted to the court.

The judge in this case—the Honorable Fred Slaughter—didn't just slap them on the wrist; he formally sanctioned them. Moreover, he refused to grant their request to withdraw the tainted filings to fix them. This is a massive blow to the plaintiff's credibility and a huge foothold for the defense to poke all kinds of holes in every future filing.

Turns out lying to a federal judge—even by accident—is frowned upon legally.

What I Got Right

I predicted that this "hallucination" issue would be a major stumbling block for the Goon Squad. And it was. This is a straight up Looney Tunes mistake in a case where the plaintiff is trying to paint OnlyFans as an organized crime syndicate.

Imagine you sue someone who scammed you and your lawyer showed up to court and took a big stinky shit in his pants in the middle of presenting your case and you will have some sense for how utterly humiliating this is.

Mistakes like this signaled to the judge that the plaintiffs were throwing bullshit at the wall to see what stuck, rather than building the meticulous legal arguments required for claims of this seriousness, and that's exactly what led to the big news.

Part 2: The Better News (RICO and Wiretap Claims Dismissed)

Now, the biggest news by far is what's happened to the RICO and the Wiretap Act claims.

In my original analysis, I explained that the plaintiffs were trying to use the Racketeer Influenced and Corrupt Organizations Act (RICO) to claim that OnlyFans and the agencies were operating like a mafia enterprise. They claimed that the "deceptive chatting" was wire fraud, and the coordination between OF and agencies constituted a criminal enterprise.

I told you this was "hilarious" and "almost certainly going to be dismissed" because the standards for RICO are incredibly high. These are laws that were invented to stop organized crime—literal mafias, like in The Godfather. You have to prove a specific structure exists solely for the purpose of committing crime—in this case, fraud—separate from the normal course of business.

The Judge's Decision

As of December 12th, 2025, the court has dismissed the key RICO claims.

The judge essentially looked at the RICO theory and said "absolutely not." You cannot simply point to a platform (OnlyFans) and its users (Agencies) doing business together and call it a criminal racketeering enterprise just because the 18-year-old goth baddie you were chatting with turned out to be a middle-aged Pakistani man—and that's even assuming that OF is coordinating with agencies, which I personally don't believe they are.

Similarly, the claims regarding the Wiretap Act—the idea that agencies were "intercepting" communications illegally—were also dismissed.

The court system, generally speaking, assumes that consumers are adults who read contracts, as opposed to braindead chronic masturbators. As I pointed out previously, the OnlyFans Terms of Service explicitly states: "The Fan acknowledges that third parties may assist Creators in operating their accounts and in Creator Interactions."

The fan consents to the TOS, and the agency is acting as the creator's agent. The court found the plaintiff's arguments here to be insufficient to support the broad conspiracy they alleged.

The plaintiffs tried to argue around this. They tried to say, "Yeah, but we didn't think that meant chatters!"

And the judge did not find that compelling.

Why This Matters

Wiretap was probably the scariest charge for OFM, because if this went to trial and the Goon Squad won, it would effectively make chatting illegal in the United States—which would destroy the industry as we know it. But it's looking like the two scariest charges are behind us.

Part 3: The Bad News (I Was Wrong About Something)

Now, for the bad news: I was wrong about something—the timeline.

I predicted this would take a year or two to resolve. I was way off—in a good way. In the 3 months since I made that first analysis, the judge moved VERY quickly to trim the fat from this case. I expected the plaintiffs to put up a slightly better fight regarding the "enterprise" definition, but the dismissal suggests their initial filing was even weaker than I gave it credit for.

What's Left

Now, this does not mean the entire lawsuit is over. But it does mean the dangerous, industry-ending parts are dead. The judge has allowed the plaintiffs to file an amended complaint with a limited path forward, which likely refers to much smaller, more specific claims—perhaps related to specific instances of fraud or state-level consumer protection laws.

Basically, the industry is safe. The "Goon Squad" lost. It's not over over, but it's pretty over.

Essentially, the judge said: "You can't sue them for being a Mafia, and you can't sue them for wiretapping. But if you can prove that specific guys were lied to and lost money, you might have a small case there. Try again."

My Prediction for the Future

The plaintiffs have submitted amended filings as of January 2, which I was not able to access. But given that they've already been fined for using AI to cheat on their homework, and the biggest parts of their case have been thrown out entirely, I predict:

The defendants will eventually settle for a relatively small, undisclosed amount to make the lawyers go away, or the case will be dismissed entirely with prejudice. We will not see a massive trial. We will not be shutting down chatting operations.

Part 4: Updated Advice for Agencies & Models

So, with this new information, is there anything you as a business need to do?

If you want to exercise an abundance of caution, you can refer to the tips I gave in my previous analysis about this case. But in reality, now that the RICO and wiretap charges have been tossed, it sets a strong precedent that is very unlikely to be tested again.

The Discouragement Factor

The Goon Squad has almost certainly spent tens, if not hundreds of thousands of dollars on this case, and they have absolutely nothing to show for it. This will be extremely discouraging to future potential plaintiffs—whatever the Goon Squad gets will probably not even cover their legal fees, let alone whatever they spent on OF.

The only path forward for the plaintiffs in this case is to name specific cases of fraud or consumer abuse. This means that claims will be subject to individual STATE consumer laws, as opposed to federal RICO charges.

The One Thing You Should Consider

Most of the named agencies are either incorporated or headquartered in California. Whether you're an agency or creator, if you are based in California, seriously consider moving your business entity.

While Dubai is a great option, even moving your LLC to a business-friendly US state like Texas, Wyoming, or Florida (and actually operating from there) removes you from the jurisdiction of California's specific, aggressive consumer protection laws.

This isn't because I think you'll get sued—it's just good business practice to operate in states that are more business-friendly and less likely to side with plaintiff's lawyers looking for easy paydays.

The Bottom Line

You are now officially caught up on the status of the lawsuit. As I predicted, the Goon Squad have been left holding a massive L, and it seems that for the time being, the OFM industry will move on business as usual.

The key takeaways:

1. RICO claims dismissed - OnlyFans and agencies are not operating as a criminal enterprise
2. Wiretap claims dismissed - Chatting is legal when users consent via TOS
3. Plaintiff's lawyers were fined for submitting AI-generated fake case law
4. Limited path forward - Only specific fraud claims under state law remain possible
5. Industry precedent set - Future similar lawsuits are much less likely to succeed

The most dangerous parts of this lawsuit are behind us. The OFM industry dodged a major bullet, and the legal precedent now strongly favors the current business model.

The Goon Squad spent a fortune to prove that adults who sign terms of service agreements are bound by those agreements. Groundbreaking stuff, really.