Visa Faces New Allegations in Pornhub CSAM Monetization Case

A federal district judge has ruled that Visa must address new allegations concerning its alleged role in monetizing child sexual abuse material (CSAM) found on Pornhub.com and other platforms owned by Aylo, formerly MindGeek. This decision places Visa back in focus regarding claims that it profited from such content.

Judicial Order and Allegations

U.S. District Judge Wesley L. Hsu of the Central District of California issued an order on July 9 in the case of Serena Fleites v. MindGeek S.A.R.L. et al. The order states that Visa must face allegations that it knew it was monetizing and profiting from CSAM on Pornhub and other Aylo/MindGeek platforms. This implies that Visa allegedly conspired to violate the federal Trafficking Victims Protection Reauthorization Act.

The alleged conspiracy involves an agreement with Aylo/MindGeek that "minimizes the visibility of illegal conduct" in furtherance of unlawful acts. Judge Hsu's order indicates that the allegations sufficiently demonstrate a conspiracy, finding that the plaintiffs have adequately alleged the existence of an agreement and provided a factual basis to support these claims at the pleading stage of the matter.

In a separate but related ruling, a California district judge allowed a lawsuit against Visa and MindGeek to proceed after Visa filed a motion to dismiss. This complaint alleges that Visa played a role in monetizing child pornography distributed on MindGeek's websites and that both companies violated trafficking laws. Judge Cormac Carney wrote that if Visa was aware of a substantial amount of child pornography on MindGeek's sites, which the court must accept as true at this stage, then it was aware it was processing the monetization of child pornography, moving money from advertisers to MindGeek for advertisements alongside such content.

Background of the Litigation

The litigation on behalf of Serena Fleites began in 2021. Fleites disclosed to Nicholas Kristof, a New York Times opinion columnist, and in litigation against Aylo and Visa, that she was victimized in her early teen years. Kristof's column, "The Children of Pornhub," published in December 2020, used Fleites as a framing device to support claims that Pornhub was a hub for illegal content, including CSAM. This column prompted a period of reformation, reorganization, and rebranding for the company formerly known as MindGeek.

Lawyers representing Fleites argued that MindGeek, before its rebranding to Aylo, along with Visa and a class of private equity firms preceding Ethical Capital Partners (ECP), benefited and profited from her victimization. Fleites initially sued Aylo in June 2021, accusing Visa and Aylo of working together to facilitate the unlawful monetization of CSAM imagery depicting her in a pressured sexual scenario at age 13. The video was uploaded to Pornhub without her consent.

In earlier filings, Visa attorneys argued that the court had previously dismissed all claims against Visa, primarily because Visa acted only as a "remote intermediary" whose conduct did not show an agreement or intent to join a conspiracy in furtherance of the alleged wrongful conduct. The "agreement" allegation against Aylo and Visa stems from the third amended complaint filed by Fleites and her counsel earlier this year.

Previous Dismissals and Company Responses

Judge Hsu also dismissed claims against the "Redwood Defendants," which include Redwood Capital Management and its affiliated funds and subsidiaries. Fleites and her counsel had filed a second amended complaint in 2024 targeting Redwood and funds managed by Colbeck Capital Management. A spokesperson for Redwood Capital Management told Bloomberg Law in 2024 that the firm divested its position in Aylo/MindGeek after sex trafficking allegations were made in 2020.

In a 2022 report on the case, a spokesperson for Aylo/MindGeek told Variety that the company believed the case would be dismissed for "lack of merit." The spokesperson added that "MindGeek has zero tolerance for the posting of illegal content on its platforms, and has instituted the most comprehensive safeguards in user-generated platform history."

Litigation in this case is ongoing.

Key Facts

• U.S. District Judge Wesley L. Hsu ruled on July 9 that Visa must face new allegations regarding the monetization of CSAM on Pornhub and other Aylo platforms.
• The ruling is part of the civil case Serena Fleites v. MindGeek S.A.R.L. et al.
• Allegations suggest Visa conspired to violate the federal Trafficking Victims Protection Reauthorization Act.
• The "agreement" allegation against Aylo and Visa comes from the third amended complaint filed by Fleites and her counsel.
• Claims against the "Redwood Defendants," including Redwood Capital Management, were dismissed by Judge Hsu.
• A spokesperson for Aylo/MindGeek stated in 2022 that the company expected the case to be dismissed for "lack of merit."