Professional Documents
Culture Documents
Patmos v. Truth Army
Patmos v. Truth Army
(b) County of Residence of First Listed Plaintiff County of Residence of First Listed Defendant
(EXCEPT IN U.S. PLAINTIFF CASES) (IN U.S. PLAINTIFF CASES ONLY)
NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF
THE TRACT OF LAND INVOLVED.
(c) Attorneys (Firm Name, Address, and Telephone Number) Attorneys (If Known)
II. BASIS OF JURISDICTION (Place an “X” in One Box Only) III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an “X” in One Box for Plaintiff
(For Diversity Cases Only) and One Box for Defendant)
1 U.S. Government 3 Federal Question PTF DEF PTF DEF
Plaintiff (U.S. Government Not a Party) Citizen of This State 1 1 Incorporated or Principal Place 4 4
of Business In This State
2 U.S. Government 4 Diversity Citizen of Another State 2 2 Incorporated and Principal Place 5 5
Defendant (Indicate Citizenship of Parties in Item III) of Business In Another State
v.
Defendants.
1. The court has jurisdiction under 28 U.S.C. § 1332. First, there is complete
diversity. Based on its state of incorporation and principal place of business, plaintiff, Patmos
Hosting, Inc., is a citizen of Missouri. On information and belief, defendant Truth Army
Productions LLC’s members are not individuals who are citizens of Missouri. Defendant Joseph
In sum, there exists complete diversity of citizenship. Second, plaintiff alleges that defendants
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2. Plaintiff is Patmos Hosting, Inc., a Missouri corporation with its principal place of
3. Defendant Truth Army is a Delaware limited liability company. Its registered agent
is URS Agents, LLC, 614 N. DuPont Highway, Suite 210, Dover, DE 19901.
48328.
Mar, CA 92625.
A. Background
7. Patmos had a long-time client, St. Michael’s Media, Inc. d/b/a Church Militant
(hereinafter, “Church Militant”). 1 Patmos and Church Militant entered a contract (the “Contract”).
8. The Contract states that Patmos would provide cloud-hosting services, software
development, and maintenance to Church Militant. The Patmos services formed the foundation
9. Church Militant’s business was based on its video library and paywall, which drew
subscribers who paid Church Militant money in exchange for being granted access to the video
library.
1
The term “Church Militant” refers to St. Michael’s Media, Inc., as well as all entities relating to St.
Michael’s Media, Inc., including entities bearing the name St. Michael’s Media, Church Militant, or both.
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10. Through the Contract, Church Militant acknowledged Patmos’ ownership of the
software (including source code) that supported the Church Militant video library and paywall.
11. In exchange for Patmos’ services, Church Militant agreed to pay Patmos
12. From the start of the Contract until January 31, 2024, Church Militant paid on time.
13. Beginning in February 2024, however, Church Militant started to share with
14. Church Militant blamed its trouble on its ex-executive and founder, Michael Voris.
For example, a Catholic priest had filed a defamation lawsuit against Mr. Voris and Church
Militant. By February 2024, this defamation lawsuit was on the eve of trial.
15. On February 13, 2024, the Church Militant board stated to Patmos CEO, John
Johnson, that Church Militant would be dissolving under Michigan law effective March 15, 2024.
16. At the February 13 board meeting, Patmos proposed to Church Militant that Patmos
17. Alternatively, Patmos proposed to Church Militant that Patmos could bid in the $3
million debt owed from Church Militant to Patmos in exchange for Patmos taking title to the assets.
18. Regarding both proposals made by Patmos to the Church Militant board, Patmos
was trying to help an important client with whom Patmos and its predecessors had had a ten-year
relationship.
19. Church Militant and its executives and affiliates knew of the two proposals that
Patmos made at the February 13 board meeting. For example, on February 16, 2024, Patmos’
counsel discussed the two proposals with Church Militant’s counsel. On this February 16
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telephone call, Church Militant’s counsel stated that a third party was in the process of signing a
20. Later that day, February 16, Church Militant disclosed a third-party purchaser who
21. On February 27, 2024, Church Militant disclosed to Patmos that Truth Army
planned to sign a “management agreement.” “Essentially Truth Army takes over management . .
. from bills payroll, content, everything. . . . . You and Joe Gallagher can talk when the agreement
is in place.”
22. On March 4, 2024, John Johnson spoke with Mr. Sando, a member of the Church
Militant board. Mr. Sando stated to Mr. Johnson that Sando had read the Contract, knew what
Patmos was trying to do for Church Militant, had a Church Militant board meeting that night, and
23. Later that day, Mr. Johnson talked with Mr. Gallagher. Mr. Gallagher stated that
Truth Army was now managing Church Militant. Mr. Johnson stated that Patmos had been
working overtime at the special request of the client. This substantial project was now nearly
complete. (For context, the rebrand had been in process for 7 months. When the financial trouble
became apparent, Church Militant encouraged Patmos to hurry up on the rebrand so that Church
Militant could pivot after the troubles with a fresh look.) On the March 4 teleconference,
Mr. Gallagher told Patmos that Truth Army would be moving Church Militant in a completely
different direction.
24. Mr. Johnson stated that Truth Army, having assumed management of Church
Militant, was managing an entity in the Contract with Patmos; therefore, what did Truth Army
want Patmos to do? Mr. Gallagher said that there were no action items.
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25. Mr. Gallagher requested that Gallagher, Patmos, Truth Army, and Geoffrey Sando
have a meeting March 11, 2024, giving Truth Army and Mr. Sando time to assess how the rollout
of their new management of Church Militant went. Mr. Johnson said that that would be fine, but
Patmos had not been paid for February 2024 services rendered. Mr. Johnson stated that if Patmos
was asked to stay in a “holding pattern” while Truth Army tested reception of the new management
of Church Militant, then was it not fair for Truth Army to come current on the services rendered
under the Contract? Mr. Gallagher responded that Geoffrey Sando had mentioned that the Patmos
invoice should be “taken care of.” Mr. Gallagher added, “I’m much more vision; Geoff is
business.”
26. Mr. Johnson asked when the invoices would be paid, and Mr. Gallagher stated that
he would have to defer to Mr. Sando. Mr. Gallager: “We want to make sure it is taken of care of
as soon as possible.” Mr. Johnson said that it was imperative that Church Militant not get so far
behind on the Contract that Church Militant was not online anymore.
27. Mr. Gallagher also stated that he, as of March 4, was a member of the Church
Militant board, along with Geoffrey Sando and others. In his capacity as a Church Militant board
member, Mr. Gallagher stated that he had the authority to ask regarding past Patmos services to
Church Militant.
28. On March 5, 2024, Truth Army, Joseph Gallagher, and Geoffrey Sando began to
disable the Church Militant website and posted media content stating that Church Militant
subscribers should access the Truth Army website. In other words, Messrs. Gallagher and Sando,
both Church Militant board members, disabled paying customers’ access to Church Militant and
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29. Mr. Gallagher explained in a four-and-half minute video what they had done.
According to Mr. Gallagher, Truth Army was “managing” the Church Militant assets. In a posted
comment to this Joeseph Gallagher video, an incredulous subscriber responded to this statement
as follows: “What does it mean to manage not-owned assets? Who owns the assets? To whom
30. This aggrieved consumer’s comment underscores defendants’ bad conduct. Truth
Army is an entity that purports to have been “managing” Church Militant. In fact, however, Truth
Army disabled the Church Militant website, attempted to take the paywall that Patmos had
developed for Church Militant’s use and tried to use the paywall on the Truth Army website,
funneled unwitting Church Militant consumers from Church Militant to Truth Army. And perhaps
most egregious to the public interest, Truth Army, with knowledge of Messrs. Gallagher and
Sando, shut off access to Church Militant and stripped a consumer’s ability to cancel his or her
subscription.
31. Messrs. Gallagher’s and Sando’s conduct as Church Militant board members also
reeks of bad faith and self-dealing, warranting liability against them as individuals. According to
Mr. Gallagher, Mr. Sando was “business,” and Gallagher was “vision.” Based on conversations
between Mr. Johnson and defendants Gallagher and Sando, Mr. Sando directed that the bad acts
set forth in paragraph 30 occur as a condition to Mr. Sando loaning Truth Army money or investing
in Truth Army. Mr. Gallagher, for his part, was the individual who, forward-facing, committed
the bad acts for all to see and hear. Patmos saved evidence demonstrating the bad acts listed in
paragraph 30 and will introduce this evidence into the record at summary judgment or trial.
Showing their bad faith, defendants attempted to destroy this evidence on March 7, 2024.
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32. In the video where Mr. Gallagher describes disabling Church Militant as “managing
Church Militant,” Truth Army shows that Truth Army was trying to use the paywall that Patmos
33. Mr. Johnson had conversations with the other Church Militant board members
during the week of March 4. One of them, named Mike Sherry, stated to Mr. Johnson that Mr.
35. The Contract is legally enforceable, Patmos performed all its obligations under the
Contract, and Patmos holds an at least $3 million right of payment under the Contract.
36. Church Militant, the counterparty to the Contract, breached the Contract by refusing
to pay Patmos. Moreover, the Church Militant board repudiated the Contract on February 13 and
March 4, 2024.
37. Truth Army instigated the breach of the Contract. First, Truth Army used its control
of Church Militant to ensure that Church Militant would not pay Patmos. Second, starting March
5, 2024, Truth Army disabled the Church Militant website and directed the Church Militant
subscriber base to Truth Army, again ensuring that Church Militant would breach the Contract.
Third, starting March 5, 2024, Truth Army published media encouraging the Church Militant
subscriber base to join and pay Truth Army, again ensuring that Church Militant would breach the
Contract. Fourth, Truth Army disabled the Church Militant website and stripped consumers of
their ability to cancel their subscriptions, ensuring that there would be no subscriber base in the
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38. Truth Army’s acts of instigation have caused Patmos no less than $3 million in
damages.
40. The Contract is legally enforceable, Patmos performed all its obligations under the
Contract, and Patmos holds an at least $3 million right of payment under the Contract.
41. Church Militant, the counterparty to the Contract, breached the Contract by refusing
to pay Patmos. Moreover, the Church Militant board repudiated the Contract on February 13 and
March 4, 2024.
42. Joseph Gallagher instigated the breach of the Contract. First, Gallagher used his
board position with Church Militant to ensure that Church Militant would not pay Patmos. Second,
starting March 5, 2024, Gallagher disabled the Church Militant website and directed the Church
Militant subscriber base to Truth Army, again ensuring that Church Militant would breach the
Contract. Third, starting March 5, 2024, Gallagher published media encouraging the Church
Militant subscriber base to join and pay Truth Army, again ensuring that Church Militant would
breach the Contract. Fourth, Mr. Gallagher disabled the Church Militant website and stripped
consumers of their ability to cancel their subscriptions, ensuring that there would be no subscriber
base in the future supporting Church Militant’s ability to perform under the Contract.
43. Gallagher’s acts of instigation have caused Patmos no less than $3 million in
damages.
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45. The Contract is legally enforceable, Patmos performed all its obligations under the
Contract, and Patmos holds an at least $3 million right of payment under the Contract.
46. Church Militant, the counterparty to the Contract, breached the Contract by refusing
to pay Patmos. Moreover, the Church Militant board repudiated the Contract on February 13 and
March 4, 2024.
47. Geoffrey Sando instigated the breach of the Contract. First, Sando used his board
position with Church Militant to ensure that Church Militant would not pay Patmos. Second,
starting March 5, 2024, Sando caused the Church Militant website to be disabled and directed that
the Church Militant subscriber base be moved to Truth Army, again ensuring that Church Militant
would breach the Contract. Third, starting March 5, 2024, Sando funded and otherwise caused
media to be published encouraging the Church Militant subscriber base to join and pay Truth
Army, again ensuring that Church Militant would breach the Contract. Fourth, by causing the
Church Militant website to be disabled, Mr. Sando stripped consumers of their ability to cancel
their subscriptions, ensuring that there would be no subscriber base in the future supporting Church
48. Sando’s acts of instigation have caused Patmos no less than $3 million in damages.
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49. Based on the forgoing, plaintiff Patmos requests that the court enter a judgment in
c. Such other relief as the court finds is due to Patmos at law or in equity.
Douglas P. LaLone
MI. Bar # 45,751
FISHERBROYLES, LLP
400 Renaissance Center, Suite 2600
Detroit, MI 48243
Douglas.LaLone@FisherBroyles.com
Matthew M. Wawrzyn
(pro hac vice application forthcoming)
(IL ARDC #62763138)
Matthew.Wawrzyn@fisherbroyles.com
FISHERBROYLES, LLP
200 East Randolph Street, Suite 5100
Chicago, IL 60601
(224) 777-1787 (telephone)
(312) 233-0063 (facsimile)
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Verified Statement
I, John Johson, am CEO of plaintiff Patmos Hosting, Inc., and I have read the Complaint
in this matter and I confirm that the statements made herein are accurate to the best of my
knowledge.
Signed:_____s/John Johnson_______________
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