May 14th, 2015 by WCBC Radio
The Cumberland Times News reprots thecorporate owners of Rocky Gap Casino Resort face three separate class action lawsuits after the company’s planned merger with a Las Vegas-based gaming company. Information on the lawsuits was filed with the federal Securities and Exchange Commission by Lakes Entertainment, the corporate owner of the resort. In January, Lakes and Golden Gaming announced plans to merge by the end of the year.
The lawsuits are filed in the Minnesota state courts. While Lakes’ officials have said they do not think the merger will be derailed because of the suits, they acknowledge that possibility in the May 7 SEC filing.
“The plaintiffs seek, among other things, to enjoin the transactions contemplated by the merger agreement and attorney’s fees. An unfavorable outcome in these lawsuits could prevent or delay the consummation of the merger, result in substantial costs to Lakes, or both. It is also possible that other lawsuits may yet be filed and Lakes cannot estimate any possible loss from this or future litigation at this time,” according to the SEC filing. The first suit was filed in February. The suits allege the planned deal isn’t in the best interest of shareholders and that in the proposed transaction with Golden Gaming, the defendants have breached their fiduciary duties of good faith, loyalty and due care, and/or have aided and abetted such breaches,” according to the document.
Rocky Gap Casino Resort generated $3,927,429 from both slot machines and table games in April, according to the Maryland Lottery and Gaming Control Agency. That’s up from March revenues of $3,855,680.
The casino’s April 2015 revenue increased by $292,222, or 8 percent, from April 2014. Rocky Gap Casino Resort operates 577 slot machines and 17 table games.
.jpg)
