Back in 2012, three women filed a lawsuit against Backpage in the state of Washington. They claimed they were underage when they were forcibly trafficked for sex on the website. Previous lawsuits like this filed against Backpage have failed, however, in 2015, the Washington State Supreme Court ruled the lawsuit could proceed.
Earlier today it was reported Backpage settled the lawsuit with these women although the settlement itself has not disclosed to the public.
This story has huge implications when it comes to the future, or lack thereof, of Backpage. The first is that this is obviously an attempt to appease Congress who has been breathing down Backpage’s neck with supposed evidence of criminal activity in the way Backpage edits their ads. The second is that Backpage’s other pending lawsuits against them in the states of Texas, California, and Alabama, may either proceed or be settled as well. These settlements can’t be exactly cheap for Backpage. This could lead to even more lawsuits and more settlements until Backpage is hopefully bankrupt. I could see the triumvirate of Backpage CEO Carl Ferrer, and founders Michael Lacey and Jim Larkin paying out millions of dollars in order to avoid any kind of real prison time.
Maybe, just maybe, this is finally the writing on the wall for Backpage.