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Ezra Shashoua, the company's chief financial officer, blamed the lower revenue on a drop in membership and increased advertising costs for affiliates, according to court documents.
Shashoua also said credit card companies had refused to process transactions for the company's Internet businesses.
Friend Finder Networks (formerly Various, Inc.) is an American internet company founded in 1996 by Andrew Conru.
Its corporate headquarters are located in Boca Raton, Florida, with additional offices in California, New York, and Taiwan.
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The breach included account data from Adult Friend Finder (which constituted over 339 million accounts), Cams.com, and Penthouse, including accounts that had supposedly been deleted.
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The passwords were either stored as plain text or encrypted using the obsolete and insecure SHA-1 cipher.
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