Most of the information about the scandal has apparently been scrubbed from the internet through legal action, but there's a brief summary on the scandals of StripperWeb here:

Why do the strippers all seem to to think and act alike, even though much/most of what they say/post goes completely against our regular experiences in a strip club? It's the hive mentality that takes over the place, and has gradually increased through three very distinct eras. The first was what I dubbed "Mileage Wars 1," in which a number of formerly very popular strippers were first shamed and then shunned by the other female dancers for admitting they actually liked giving lap dances and that it wasn't just "work" to them. The board quieted down until another baby stripper posted in one of ehr first posts that she often got off on giving laps, and really enjoyed taking care of her customers. This started "Mileage Wars 2" and drove away more strippers who had no issues publicly admitting that they were a sex worker who actually enjoyed sex (heavens!). Finally, the death knell for most strippers (and many frequent male posters as well) was The Accusation by a stripper named Dottie Rebel, who accused the SW benefactor "Kevin" of drugging and raping her.

Most everyone who was anyone left the site and a number of dancers then started EDN (Exotic Dancers Network), a "site by strippers for strippers," which was clearly a dig at the former owner of SW who was a guy who was another dancer's webmaster who then started up StripperWeb. As a side note, before EDN started up, a large number of former SW dancers started their own private dancer only website, to which I and a few other male participants were allowed to be a member of. This site was was a real eye opener,and the dancers on it were a lot more honest about what they did and to whom they did it. They also shared secrets from other dancers, until finally one of them copied the posts and shared them with other dancers outside of the private site, which was its death knell.

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Some links about the drama:

Thread on alt.seduction

IT exec linked to scandal

An admin makes a metapost, stating that a Cease and Desist was made against one of the accusers

A thread referencing (now deleted) articles about the matter