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Steve, I am having a hard time figuring out what legal claim a PW would have in order to sue to prevent a scene with Jackfrom being released.
Probably nothing to block a scene, but easily there's a ton of statues for a worker to sue a company for after the fact...unsafe work environment, emotional damage, job reputation, all sorts of weird laws when it comes to workers and sex offender legislation. You really think some shittily composed model release would exempt a porn company? Still, an actress' case would pale in comparison to the suits the victim could bring against companies who tried to profit from Jack's name after his crime, especially those companies with new releases from the last year.
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LA Direct had him up on the site for a few years. I think they were being loyal to a good male performer who brought Derek some of his most popular girls.
Glad to know the ability to get new porn stars trumps being accused of rape in a case of national exposure at LA Direct. 
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Also Jack wasn't convicted of anything at that point, so why take away the man's right to earn a living?
"Innocent before proven guilty" may be how the courts work, but its absolutely the stupidest thing to follow in the world of business.
He waived his option for a speedy trial. He asked for a delay three different times (wasn't this trial supposed to start in April?). And during those delays he continued to work and make money for Derek and LA Direct. Its not like he stopped to face the music, he continued to make money as long as he possibly could and delay his imprisonment. I'm totally shocked the judge who granted him bail didn't set preconditions on his work choices prior to the trial.
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I got news for you Stevie, there are plenty of performers in this business with criminal records. I know of a male performer who was in jail for murder AND assaulting his pregnant girlfriend. That's two different sentences. And no one knows and no one says boo about it.
Skeeter? Or is it Donny Long? Chico Wang? Or Brian Surewood...or? 
The industry is full of criminals but this case is very different. Jack was one of the top male performers, had made a number of national TV appearances to promote his career and movies prior to his little rape fest, his crime fit his porn "character", and this story was on every major news network for a number of days. It wasn't some big secret. Shelley Lubben's picked up on it for quite some time; you don't think something like this will be one of the first things she mentions next time she's testifying before the California legislature?
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"I choppy choppy yo pee pee"