A judge has ruled that Penthouse Media Group Inc. must face former chairman and Penthouse Magazine founder, Robert Guccione’s lawsuit challenging his dismissal.

Penthouse Media Group and its principals, Marc Bell and Daniel Staton are being sued by Guccione, as the former Penthouse publisher is claiming breach of contract for not keeping him on as a consultant after they brought the company out of bankruptcy in 2004. Guccione was allegedly supposed to be paid $500,000 a year for his role as a consultant.

It is reported that Guccione was offered the consultant position for ten years in exchange for conveying ownership of Penthouse trademarks and not filing a claim for severance, according to a 2005 complaint filed by the former publisher. However, not long after the company emerged from bankruptcy, Guccione was dismissed for not giving up his rights to U.K. trademarks.

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