BEVERLY HILLS, Calif. — LFP, Inc., proprietor of newsstand publications, video, broadcast PPV and VOD channels, and retail stores, has filed an answering statement and cross-demand for arbitration against Giant Mobile, a Santa Monica-based mobile content provider, for breach of contract, tortious interference and infringement arising out of a previous business relationship between the parties for the Hustler Mobile service. LFP, Inc. is seeking approximately $20 million in economic damages, and an unspecified amount in punitive damages.

LFP elected to terminate its license agreement with Giant Mobile after conducting an audit of Giant’s books and records. While LFP had hoped to resolve its differences with Giant Mobile amicably, such a resolution was not possible.

“LFP did its due diligence and it is the company’s position that Giant Mobile was in default of our agreement in various areas and when it became clear that these issues could not be resolved we took action to terminate the agreement. It is LFP’s belief that this position will be vindicated at the arbitration between the parties,” said Michael H. Klein, President, LFP Broadcasting, LLC. “We see little merit in the claims made against LFP by Giant in the arbitration, and look forward to the day when this matter is resolved in LFP’s favor.”

Subsequent to the termination of its licensing agreement with Giant Mobile, LFP negotiated a new licensing deal with mobile entertainment company Mobival for the territories of Europe, Central and South America. LFP is also looking to expand its Hustler Mobile service into markets not covered by its licensing agreement with Mobival.