Roger,
If you have your lawyer involved I am fairly certain that he would have advised you not to start a thread like this. If you're not respecting Peekshow's TOS then they may be within their rights to stop working with you. Accusing them of Blackmail in a public forum could land you in some serious trouble if they decided to pursue it. What I would suggest that you do is review their TOS with your lawyer, then contact them to work it out. Regardless of which one of you may have made a mistake, this would be a chance to settle the dispute properly, or fix the mistake and continue what seemed like a profitable business relationship.
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