"How is ContentPixel Not A Sub-network?" -
"ContentPixel is a brand owned & operated by Pongalo." is your response, given the fact that you are operating under another network and claim you're not a sub-network, you are lying to try to get around the fact that you're in trouble. You are doing business as ContentPixel under the name Pongalo. You are a sub-network, plain and simple. You are subjected to not only being sued, but having your business no longer being able to be operated or affiliated with YouTube, and are more than likely to serve jail time.

"You say the $4,000 display of earnings was out of your hands" -
Your response is completely idiotic. You are not getting away from this, you own this network, therefore you are suppose to be in charge of everything that is happening, if you are not in charge, you are a sub-network. Given the fact that you are not compensating someone who is giving you details about this error and you are not making an effort to fix it, you are subjected to being sued over this as well for theft of money. Given the fact you state you're not stealing anything, you are however, keeping the user from obtaining the money that is rightfully their's.

“False advertising of a no lock-in agreement” -
You claim they have a contract that tells them that they are locked in, and claim since they are aware of this, then it's not illegal, that is false. You are advertising that there is absolutely no lock-ins at all, but even if it's in a contract, you still advertised it, therefore, you are false advertising and are subjected to being sued.

I took their responses and responded to them from http://www.contentpixel.co/herotic-statement-2-0/

If you honestly think you can get away with this, you  are sorely mistaken. I will not stand for this, I will find any and every information I can to take your company out. You may not get sued or shut down legally, but rest assured, you will never do business again.

The reason I'm doing this is because I am pissed at people and companies/organizations who lie and cheat their way to make a few extra dollars, and in order to do that, they hurt people in the process.