The company and its affiliates comprise a global network of more than 8,000 websites with 220 million members and 750,000 subscribers, according to court documents.
But while Facebook, Linked In and other social sites have boomed, Friend Finder's limped.
Through a network of thousands of websites, Friend Finder provides live video, chat rooms, and photo and video sharing.
It also sought to tap the powers of social networking with websites such as adultfriendfinder.com, which promoted casual sex, and bigchurch.com, which aimed for spiritual connections.
Its revenue in the year ended June 30 totaled 3.70 million, down 10 percent from the previous year.
Hardest hit was the company's social networking websites, where revenue fell 17.6 percent, according to court filings.
has only just been made aware of this potential issue and understands and fully appreciates the seriousness of the issue," the company said.One of the largest online dating sites, the 64 million-member Adult Friend Finder.com, has contacted law enforcement and high-profile security firm Fire Eye to investigate a data breach.