Porn Star Sued|Over Hangover Drinks


     LOS ANGELES (CN) – Former porn star Jay Grdina defrauded a business partner of his shares in a company that sells a hangover drink, the partner claims in court.
     Todd Blatt and TCB Partnership sued the maker of the hangover supplement, NOHO, Dolce Bevuto Inc., and John George Grdina aka Jay Grdina, 46, on Monday in Federal Court.
     “Through their substantial investment of blood, sweat, tears and capital, plaintiffs built NOHO into a successful, publicly traded company. In return, NOHO and its CEO, pornographic actor turned entrepreneur, Jay Grdina, rewarded plaintiffs with dishonesty and broken promises. Plaintiffs have been cheated out of their rightful interest in NOHO and defendants must now answer for their actions,” the lawsuit states.
     Grdina performed under the name Justin Sterling. He was married to porn actress Jenna Jameson, who filed for divorce in 2006.
     Blatt seeks $5 million in damages for breach of contract, constructive fraud, fraudulent inducement and other counts. He claims Grdina reneged on an agreement to issue him shares in the company.
     NOHO makes two beverages, The Hangover Defense, which is sold as a 2-oz. shot, and Premium Lifestyle Beverage, which is sold in an 8.4-oz. can.
     Blatt says he worked as an international agent for Grdina’s company, Club Jenna, which Grdina founded with Jameson.
     He claims he then entered into a deal with Grdina to manage international licensing and distribution for the hangover drinks in exchange for a 10 percent founder’s interest in NOHO.
     Under a June 2011 distribution agreement, Blatt claims, TCB was to receive a 15 percent cut of commissions on international sales, a 10 percent commission on sales in Canada, and 20 percent for all foreign licensing for manufacturing. Blatt claims that TCB later agreed to fill domestic orders too.
     He claims that under his guidance the hangover beverages became international bestsellers.
     In March 2012, Blatt claims, he agreed to take a 5 percent non-dilutable interest in Dolce rather than his 10 percent cut in NOHO, believing the terms were more favorable.
     But in May 2013, Blatt says, Grdina merged Dolce Bevuto into a new Nevada-based company called Dolce, without reissuing TCB’s shares. NOHO allegedly owns the new entity.
     Grdina then told Blatt and TCB that the 5 percent interest was not non-dilutable after all, according to the complaint.
     “Defendants further instructed that before any shares in NOHO could be issued to plaintiffs they would have to a) sign a new ‘lock up’ agreement with NOHO for their 5 percent ‘dilutable’ interest and b) enter into a new ‘non-exclusive’ foreign distribution agreement with NOHO,” the complaint states. “If they refused, plaintiffs were informed that their interests would be canceled and the distribution agreement would be terminated. Plaintiffs were given a moment’s notice to accept defendants new terms and when they failed to do so in the unreasonable timeframe demanded, defendants cancelled their shares in NOHO and wrongfully terminated the distribution agreement.”
     Grdina was paid a $240,000 annual salary, a $21,000 car, $4,200 in health insurance allowance and other bonuses, according to the lawsuit. His compensation for 2012 and 2013 was $375,000 the complaint states, citing SEC filings.
     “Yet, to date, despite their significant, undeniable contributions, plaintiffs have been stripped of their rights and interests in NOHO and have not received what defendants’ promised,” the lawsuit states.
     Blatt seeks an accounting, damages, costs, restitution, and imposition of a constructive trust.
     He is represented by Gary Jay Kaufman.
     NOHO did not immediately respond to a request for comment.

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