Online auction site AuctionDiner said it will subpoena chat-forum operators in a libel lawsuit against Bruce Spry and may amend the lawsuit to include the operators of the forums and as many as 100 chat forum users. On April 2, 2002, AuctionDiner filed a lawsuit against Bruce Spry, alleging false publication of a criminal nature, and charging libel per se and intentional Interference with prospective economic advantage.

"There is an unusual amount of activity where people are defaming my client," said Barry Sabahat, a lawyer for the firm of Moghaddami & Sadigh, AuctionDiner's legal representatives. "They are alleging that AuctionDiner and George Tannous are involved in criminal activities." George Tannous owns and operates AuctionDiner.

Sabahat said his firm would issue subpoenas over the next two weeks to AuctionWatch, AuctionCrotch and Mootropolis, three Web sites that offer their members online forums for discussing online-auction issues. Sabahat said he will requesting the companies to provide him with information that may link "nicknames" to users whose posts are allegedly defaming AuctionDiner. Sabahat said that his firm would be seeking compensatory and punitive damages.

Rodrigo Sales, CEO of AuctionWatch, said that he had not yet been contacted by AuctionDiner's lawyers. "We have not been served. We have not heard anything," Sales commented.

AuctionDiner recently changed its name from BidBay after being sued by eBay for trademark infringement. At the time, Tannous had stated that they could not afford to fight eBay and that it would cost them half a million dollars to do so. AuctionDiner also changed its operations from the typical online-auction site to what it calls MLA multi-level auctions, based on multi level marketing principles.