The plaintiff claimed that she was libeled by material published in magazine since 1975, including a cartoon that falsely suggested she had contracted a sexually transmitted infection from fellow Penthouse publisher (and her later to be husband) Bob Guccione, as well as a nude pictorial spread of a model who was identified as Keeton.

[2] Keeton chose to bring the case in New Hampshire, even though the plaintiff was not a resident there, because New Hampshire allowed six years to bring suit under that state's statute of limitations, which is longer than any other state.

The Court of Appeals also found the application of the "Single Publication Rule" requiring awarding Keeton damages caused in all states should she prevail, unfair since most of Keeton's alleged injuries occurred outside of New Hampshire.

The issue was whether the federal court had personal jurisdiction if the case was brought in New Hampshire, by a plaintiff from a foreign state against a nationally circulated magazine.

The Court also held that even though most of the harm done to Keeton occurred outside New Hampshire, the same would be true in most libel cases brought anywhere other than plaintiff's state of domicile.