smosh's former parent company defined media is being hit with a class-action
lawsuit after they mysteriously announced that they were shutting down
on November 6th a former employee of defined media as well as the talent
agency called generat Holdings are both suing the company defiles a lot
of people money including Smosh maybe Smosh will also get on board with this
class-action lawsuit I'm gonna tell you everything you need to know right now on
IO what is good this is inform overload I'm Charlie Joey if this is your first
time here welcome and make sure you hit that subscribe for news updates that are
actually relevant to your life I'm gonna give you an update on one of the biggest
YouTube related stories this month the shady shutdown of the parent company to
find media so we talked about to find media shutting down in a previous video
on this channel called the dirt truth about small shutting down if you haven't
seen that video it's cooking ball on your screen right now but here's a quick
recap the company that owned Smosh defy media announced on November 6 that they
were shutting down because of quote market conditions that they didn't
specify if I didn't give their employees notice for the shutdown either which
meant that everyone who worked for defy around 400 people were suddenly out of a
job one of the most vocal critics of defy was none other than Anthony from
Smosh Anthony said that after he and ian hecox sold Smosh to defy they were
making a small fraction of the money that Smosh was earning for defy Anthony
had no idea where all that money went which makes the whole on specific market
conditions reason for the shutdown that much more confusing and also shady it's
like okay defy you say you have no money but like what happened to all the money
that these youtubers were making for you according to the worker adjustment and
Retraining Notification Act de 5 was supposed to give 60 days notice to
employees before laying everybody off this rule is to protect employees and
give them a small but necessary window of time to allow them to find other
employment a former employee Georgina Gyu nein is the person who
filed the lawsuit and if she wins it means tiff I will have to pay their
employees the 60 days of wages that they were bound to pay other companies like
Shandi media and proper media are filing lawsuits as well with their seeking
between 100,000 and 150,000 in damages the crappy thing is most people think
that defy has a way out of this problem all they have to do is file for
bankruptcy and once they do all unsecured debts can be written off that
cludes the 68 payroll that they owe their employees there are quite a lot of
youtubers who could be rallying against the company as well people have changed
often Anthony Padilla and furious Pete were also vocal critics of defined media
Shane Dawson and some tweets that are now deleted called them out for ripping
off creators the tweet said imagine being a YouTube network that seals all
their creators hard-earned money and then files for bankruptcy and uses the
creator's money to pay their debt can't relate right now there are a lot of
creators who are working with defy whose Adsense accounts are now pretty much
like in limbo it used to be defy who would take the
Adsense payments and then give the creators their cut but yeah it's it's
like defy shutdown but those channels are still earning money how are those
youtubers gonna get that money is the problem on the table right now
thankfully YouTube is stepping in to make sure their creators get the money
that is owed to them but that is all I have for you on the story for now we
will keep you updated if any new info comes to light but for now I'm gonna
respond to some comments from our last video about Smosh shutting down adores
alia since said hey Charlotte you probably didn't know but his name is
Latino and it's pronounced Padilla I actually didn't know that thank you for
letting me know those silent elves they just get me every time
Kofi Fila queef I said the tea is hot I mean sometimes she is iced but saying
that wouldn't be as funny if we were talking about iced tea Tony Davis said
where is the potato King we need him back Jonny is gonna be hosting on IO on
Thursdays and Fridays unless I'm out of the office
majestic beat said Wow I don't know if they messed up the lighting but you look
awfully white today my queen that is my pale juice Ernest showing definitely not
just the lighting dick Oracle said this channels also a goddamn company I bet
they're similar to defi io is owned by Lenin Dalit Singh and the money the
channel earns goes directly to the company and the employees are paid a
rate but I can't say that I like working for IO and for a parent company and as
of right now I don't really have like any notable complaints against our
company like I would really like a fridge in the studio but I'm not gonna
go like angry tweet about it you know plus we're getting it pretty soon so
we've come to the end of the video thank you so much for spending a few of your
valuable minutes with us by the way if you have a story suggestion for this
channel we would love to hear it why don't you contact us through social
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me and I'll see you in the next IO video