The End Of Dotnext and LeapFish???

Shortly after publishing the previous post, an anonymous comment was submitted via contact form of the website.

Here is what it said:

just so you know, Ms. Slader is the only employee left at Dotnext. Everyone was let go yesterday

Note to new readers: Dotnext Inc is a parent company of LeapFish.

The Contra Costa Time in fact confirms that Dotnext has been “downsizing” while quoting the CEO of the company:

….”The company has downsized,” said Ben Behrouzi, a Danville resident who is founder and principal executive at DotNext….
…At its peak a few months ago, DotNext had about 100 workers. Now it has about 15, Behrouzi estimated. Numerous employees were let go this week…


The real reason for downsizing and possible bankruptcy maybe directly related to a lawsuit…

Cortellessa vs Dotnext Inc

For the sake of brevity(you can find all the documents of this case on Alameda County Superior Court’s Website), I will only provide copies some documents. Bellow is the copy of the original complaint:
Cortellessa vs Dotnext

According to court’s documents Ms. Cortellessa and the class action members in the above lawsuit were awarded a settlement of $85,000:
Cortellessa vs Dotnext – Judgement
However recently filed “Notice of Defendants’ Failure to Deposit Settlement Payment with Settlement Administrator Filed” says it all – Dotnext/LeapFish failed to pay:
Cortellessa vs Dotnext – Failure to Deposit Settlement Payment

A “Civil Order of Examination (Order) Issued” suggest that Dotnext Inc may have some explaining to do about inability to pay the settlement:
Cortellessa vs Dotnext – Civil Order of Examination

The above document which was filed on August 3, 2010 states that the Defendant Dotnext/LeapFish is considering “bankruptcy or other form of liquidation of assets”(to see the full size of the image bellow just click on it):
DotNext Bankruptcy

In the August 12, 2010 article by George Avalos of Contra Costa Times, CEO of Dotnext/Leapfish continues to deny any rumors about possible bankruptcy:

“We’re not filing for bankruptcy,” Behrouzi said. “We haven’t even considered filing for it.”

No matter what the end result of this ongoing lawsuit may be, those familiar with the story of LeapFish may ask what happened to the $10M LeapFish allegedly raised in the pre-launch phase? Of course the bigger question is whether or not LeapFish will be able to bounce back and recover from this “unpleasant setback”?

Disclosure: The above post is my personal opinion and does not represent official position on the issue of any of my clients or my business partners. Comments (if any) bellow do not represent my opinion nor do they represent position on this topic of my clients and business partners.

Related Posts Elsewhere:
Cuil No Longer – Leapfish To Deadpool Next? – Andy Beard predicts LeapFish heading straight into the deadpool.
Leapfish To Deadpool Next? – the one and only Lord Matt agrees with Andy’s prediction on his fantastic website.

13 Responses to “The End Of Dotnext and LeapFish???”

  1. Lord Matt says:

    Is it wrong that I feel a little pleased?

  2. Not a bit…

    I like to think that well make mistakes, and all deserve a second chance. Not in this case.

  3. [...] However on his real estate marketing blog there have been a few updates to the Leapfish saga, most notably this one covering the Leapfish financial situation. [...]

  4. It sounds from what I have read here that Ms Slader is in good company…her own…and likely to remain so!

  5. It sure looks that way Jo! Thanks for stopping by!

  6. Is it now called a slow down vs a start up?

  7. Amara says:

    Well stay on top of them, they aren’t gone. they recently posted they are moving to West Los Angles and are hiring in all departments. From the lawsuit ex employees are starting to get paid. An attorney is filing to help customers get back there funds. Please let all businesses know to contact him to get help.

  8. Amara,

    I find it hard to believe that anyone is getting paid in this lawsuit. In my opinion they are moving to LA just get as far away as possible from Alameda County Sheriff.

    There is an additional lawsuit pending (Ellis vs Dotnext), since your seem to be familiar with what is going on with LeapFish, do you think they will try to settle this one as well???

    They have learned nothing from the past and they are doomed unless they start to behave the way businesses are expected to behave today. People in Hollywood are not stupid, they will find out who LeapFish really are soon.

    Thanks for stopping by and for leaving your comment.

  9. Rudigger says:

    As an ex-employee that worked there for a few weeks, before quitting after witnessing the sheer madness that went on there. I did in fact get the form for the class action lawsuit in April and filling it out, but haven’t heard anything from them since. Reading all of this from you is a total revelation and makes me glad I got the hell out of there when I did. Thanks so much for sharing this.

  10. Rudigger says:

    And FYI, he isn’t going to LA or anywhere. Ben Behrouzi, has just moved on to his next scam, RedZilla.com, which is exactly the same thing as Leapfish but not centered around their search engine, but Google. I remember getting a call the same Kristen Slader from Leapfish, only a 2 months after leaving Leapfish, asking if I wanted to work for Redzilla now, doing the same thing: telesales. Of course I declined it. I asked her why is he moving onto Redzilla, if Leapfish is supposedly doing so well. She didn’t give me an adequate answer.

  11. @Ruddiger,
    They have posted on LeapFish’s official blog their intention to open an office in LA.

    Redzilla is kind of an old news, I saw their adds back in May or June. I thought it was initially meant to be the part (or extension if you wish) of LeapFish itself. Redzilla website however never mentions any affiliation with Dontnext Inc or LeapFish. Trafficrise.com was another website meant to be an extension of LeapFish operation- as far as I can tell Neither Redzilla or Trafficrise where updated since May.

    Venturing into PPC management is a risky thing to do, especially with tainted reputation by employing click fraud to scare potential clients into their scheme.

    Thanks for stopping by!

  12. [...] December 14, 2010 Share Against all odds, against predictions of tech industry insiders and against my own speculations, LeapFish.com, a company I have covered extensively over the last two years, is still around. This [...]

  13. Victoria Drake says:

    I was one of the suckers that bought advertising for my business on Leapfish about a year and a half ago. I never got any business from my advertising, and I was supposedly buying one of THE best taglines. When it came time to renew, I instead decided to sell my advertising space, and of course no one ever bought it….so I was out my original investment of $1500 or something ridiculous like that. Now I find that they are no longer in business – or at least online. Another lesson learned the hard way.

Staypressed theme by Themocracy