LAS VEGAS — Contesting his termination from Private Media Group, former CEO Ilan Bunimovitz and two large investors have filed suit in Clark County District Court in Las Vegas against the adult entertainment giant. The suit claims the company is mismanaged by its present chairman and board of directors.

According to a story reported by www.xbiz.com, Bunimovitz’s suit also alleges that his position was taken in retaliation for his efforts to investigate self-dealing transactions by Private Chairman Berth Milton that were possibly contrary to the Private’s interests and violative of the federal securities laws.

The suit also seeks an injunction over much of Barcelona-based Private’s business activities and seeks the appointment of a receiver.

Joining Bunimovitz as plaintiffs are stockholders Consipio Holding BV, which purports to hold 5.6 million shares of the company, and Tisbury Services Ltd., which owns 2.8 million shares. Bunimovitz owns 1.9 million shares.

A hearing over the matter begins Friday morning in Las Vegas.

According to the XBiz story, the proposed injunction would enjoin Private from issuing any additional shares of stock, incurring any additional debt, disposing of any business assets outside of the ordinary course of business and making any loans to any officer, affiliate or director of the company.

It also would force Private from closing any bank or brokerage account and paying any bonus to any officer or director of the company.

Back story: www.adultfyi.com/read.php?ID=43200