I think there were 2 main reasons Topix shut down. Neither of them had anything to do with lawsuits. Although many people were offended by the fact that Topix often allowed abusive posts, offensive material, and derogatory remarks, they (Topix) were free from prosecution and lawsuits based on their TOS which posters agreed to when they signed on to Topix. Their TOS stated specifically posts may be offensive but they are not responsible for what others post. It remained your (the posters) responsibility to report and request posts be removed. Once the KY Attorney General forced Topix to remove their $25.00 fee for removing offensive posts, they could not be held liable at all. Nobody was ever going to win a lawsuit against Topix. The most they could hope to accomplish is giving Topix a bad name which was primarily successful. Topix was always compliant with providing IP information for the purpose of pursuing the offending posters and made no claim to the contrary.
Topix operated and earned income from advertising. They were able to sell advertising by assuring the companies they could reach a certain percentage of interested buyers. And, for a long time they were highly successful in that bid. However, in time, posters grew tired of the ads and began utilizing options like “Adblock”. When that happened, Topix started losing money. The advertisers weren’t going to pay for ads nobody saw. Essentially, we as posters, or at least me since I used an ad blocking program, became the downfall of Topix and ate away at their advertising income. No income, no Topix.
Initially Topix was designed to be primarily a News Source allowing people the opportunity to comment on the news articles. Again, that was a highly popular concept and would easily sell advertisements. However, that quickly evolved into posters creating their own news in the form of threads implemented to degrade people. Topix expanded all over the world and at one time had in excess of 300,000 posters. Yes, those posters included trolls. The game threads became highly popular. The only problem with the game threads was most people playing the Last Post threads weren’t really interested in buying from Kohl’s or Coach or Wayfair and advertising funds began to dip even further. In addition, many people threatened to contact the advertisers when they weren’t satisfied with Topix response to a complaint. That was very detrimental to the survival of Topix.
The bottom line is the almighty dollar. Chris Tolles had made all the money he was ever going to make with his brainchild. The end result was no advertising money, no Topix.
And.... that’s my rather lengthy opinion. Have a nice day!