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PDS Gaming Shareholder Lawsuit Dismissed

LAS VEGAS --A shareholder suit that sought class action status against slot machine leasing company PDS Gaming Corp. has been voluntarily dismissed by the shareholder, the company said Monday. The complaint, filed in Clark County District Court, was dismissed in response to the company's motion to dismiss, PDS Gaming said.

The lawsuit alleged that the members of the company's board of directors violated their fiduciary duties in approving a letter of intent from a management group to acquire shares of common stock.

The suit was dismissed because no deal had yet transpired, the shareholder's New York attorney Curt Marshall said. The suit was dismissed without prejudice, meaning that it could be refiled should the previously announced deal take place, he said.

There was no settlement with the shareholder as a result of the dismissal.

It marked the third such complaint filed by shareholders since the company announced its intent to merge with the management group in February.

The prior two suits also were voluntarily dismissed in response to the company's motion to dismiss, PDS Gaming said.

A special committee of the company's board -- consisting of its independent directors and the potential buyers -- continues to negotiate toward a purchase agreement, the company said.

The Las Vegas company also owns Rocky's Casino & Sports Bar in Reno.

The company this month reported a profit of 5 cents per share compared to a loss of 14 cents per share in the prior year's quarter due to increased financing activity.

Copyright © Las Vegas Sun. Inc. Republished with permission.

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