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Company Asks Court to Cancel NLR Deal20 July 2000LITTLE ROCK, ARKANSAS -- July 20, 2000 – As reported by the Arkansas Democrat-Gazette: "The company backing a constitutional amendment to allow gambling in Arkansas wants out of its April purchase of a North Little Rock concert promotion company. "Natural State Resorts Inc. of Dallas filed a lawsuit Monday in U.S. District Court in Dallas against Kelli Cashion, one of the former principal owners of DKE Entertainment Inc. of North Little Rock. The suit accuses Cashion of misrepresenting the company and asks the court to void the purchase of DKE. "…Natural State Resorts bought DKE Entertainment in April and paid for it with Arkansas Casino Corp. stock. The company also lent DKE more than $100,000 that was never repaid, according to the lawsuit. The purchase price has not been disclosed. "…In addition to voiding the purchase agreement, Natural State Resorts wants the court to order Cashion to repay $122,500 in loans and award punitive damages. "Bob Buchholz, Natural State Resorts' general counsel, said Cashion "defrauded us, she defrauded vendors, she defrauded other investors that weren't disclosed to us -- she defrauded people to the tune of about $400,000." "Cashion, a North Little Rock lawyer who said she still owns 25 percent of DKE, denied the allegations Wednesday. "…`If you loan me $122,000, I run out and spend all your money and run up another $400,000 in debt, are you liable for that $400,000 in debt?' Buchholz said late Wednesday. `Cashion floated about $80,000 in hot checks ... and then tried to put the squeeze on us to pay it.' "…Currently, DKE is an inactive company, Cashion said." |