SEARCH NEWS:

 

Empire Resorts Reports New Decision in Park Place Litigation

MONTICELLO, New York -- (Press Release) -- A recent decision has changed the status of the litigation brought against Park Place Entertainment (NYSE:PPE) by Catskill Development, LLC, Mohawk Management LLC and Monticello Raceway Management LLC. On October 7, 2003, immediately after receiving a remand of jurisdiction from the Second Circuit Court of Appeals, Judge Colleen McMahon granted the plaintiff's motion to vacate her earlier decision granting summary judgment to the defendant.

The Court found that the conduct of the defendants in failing to produce certain audio tapes during the discovery phase of the litigation was sufficient grounds for the earlier judgment to be vacated. In the view of the Court, "substantial justice counsels in favor of vacatur to allow plaintiffs a brief opportunity to take discovery."

The Court called for a thirty day period of additional discovery, after which the parties will be allowed to provide further briefs. The terms of the additional discovery outlined in the decision do not cover a majority of the issues raised in the plaintiff's appeal and there can be no assurance that the effect of the decision will be to ultimately change the original decision of the Court.

One effect of the decision is to suspend the plaintiff's currently pending appeal. Thus, if the ultimate outcome in the District Court does not change as a result of the additional discovery resulting from the withheld audio tapes, the effect of the decision will be to delay the determination of the appeal for an additional period of time, currently estimated by counsel to be six to ten months.

Under the agreement of the merger between Empire Resorts (NASDAQ:NYNY) and Catskill, the claims in this litigation are to be transferred to a trust for the beneficial owners of the claim at the time of the merger, including the Company's shareholders of record at that time. Should the position of the parties change materially as a result of the progress of the additional discovery and deliberation by the court provided for in this decision, the provisions with respect to the litigation in the merger agreement may be subject to change.

< Gaming News