PokerStars v Atlantic Club Hearing Scheduled For May 17thMay 9, 2013 1:47 pm
Recently, Pokerstars’ attempt to purchase The Atlantic Club in New Jersey for a knock-down price hit a serious bump after the deal expired before an agreement could be reached. However, the world biggest online poker room has not given up hope of entering the US gaming market once again, and has now issued a court order restraining the casino from selling itself to another firm.
That order has now been signed by Atlantic County Superior Court Judge Raymond Batten, thus reinstating the $15 million purchase agreement which was ended by the Atlantic Club. Apparently, PokerStars had already invested $11 million of that money to help keep the beleaguered casino afloat and Pokerstars is now claiming that the Atlantic Club owners have violated their agreement. As PokerStars spokesman Eric Hollresier, commented:
“This step has been taken to protect Rational Group’s [Parent company of Pokerstars] rights and interests under the purchase agreement and reflects the group’s desire to complete the acquisition of the Atlantic Club.”
In the lawsuit filed by PokerStars in the Superior Court, the poker room has alleged that just one day before the deal was ended, the sellers had suggested Pokerstars pays them an additional $6 million in exchange for extending the purchase agreement by a further 10 days, while also demanding they be allowed to negotiate alternate deal with other potential buyers.
Had the Rational Group complied with the demand, the company alleges it would have paid the asked for purchase price, but received absolutely nothing in return. As PokerStars attorney Wayne Positan wrote in the complaint: “The circumstances of the termination and the outrageous nature of the terms of the extension demonstrate that [the sellers] have breached the contract and the duty of good faith and fair dealing.”
An initial hearing has now been set before Judge Batten on May 17th.