Gaming News

Great Canadian Gaming Drops Lawsuit

RICHMOND, British Columbia – (PRESS RELEASE) -- Great Canadian Gaming Corporation ("the Company") (TSX:GCD) President Anthony R. Martin, is pleased to announce that the Company has settled its defamation claims against Allegiance Capital Corporation ("Allegiance") and its President Mr. David Mahmood.

In a written letter by Allegiance to the Company's Chairman Mr. Ross McLeod, Mr. Mahmood formally retracts defamatory statements concerning the Company made by him and Allegiance representatives in CBC broadcasts and in a subsequent news story in the Goldstream News Gazette. Mr. Mahmood acknowledges that he and his company had no personal knowledge of Great Canadian and/or its operations in B.C. and Washington State and was relying on the statements of two former.

Mr. Mahmood offers his and Allegiance's sincere apology to Great Canadian for all damage caused to Great Canadian's good name and also acknowledges that Great Canadian had to commence actions with respect to each of the CBC and Goldstream News Gazette news stories. Mr. Mahmood and Allegiance have instructed its solicitors to tender a payment of $10,000 by way of amends, which will be donated by Great Canadian to the Hastings Centre at the racecourse in Vancouver.

Mr. Mahmood also formally apologizes on behalf of himself and his company for deposing the former employees of Great Canadian in Texas since that may have given credibility to their allegations of wrongdoing.

Allegiance is now aware that those former employees left Great Canadian under acrimonious circumstances and had "an axe to grind". Mr. Mahmood went on to say, "Given the strict regulatory regime that governs gaming in British Columbia, we acknowledge that these allegations are unfounded."

Great Canadian has instructed its solicitors to discontinue its actions against the CBC, the Goldstream News Gazette, and their employees, in light of the retraction and public apology from Allegiance and Mr. Mahmood. Great Canadian and Allegiance have also settled two other outstanding lawsuits: one that Allegiance commenced in Texas and one that the Company commenced in B.C. The Company has agreed to the payment of $1.8 million USD to Allegiance for the termination of its lawsuits against the Company and its officers. In the opinion of the Company, the amount was acceptable due to the uncertainty created by continued litigation, the significant distraction to management, and the potential impact on corporate profitability by way of legal fees, court costs, and other costs.

Great Canadian is pleased to have these lawsuits formally dismissed and the public retraction made to Great Canadian by Mr. Mahmood on behalf of his agents and Allegiance. The Company prides itself on its stellar reputation and hopes that the formal statements issued by Allegiance will erase any blemishes caused to its good name and that of its officers, directors, and Management

< Gaming News