PokerStars Files Lawsuit Against Atlantic Club Casino; TRO Granted

Rational GroupThe Rational Group has officially gone forward with a lawsuit against the Atlantic Club Casino for the contract termination that reportedly led to their deal falling through just last week.  We reported earlier today on the situation regarding Rational’s intention to go forward with bringing the deal back on the table, but we didn’t think it would escalate to this.

Diamond Flush Poker, one of the poker media’s premier news outlets, was the first to break the story regarding PokerStars’ parent company pursuing the matter in court against the Atlantic Club.  According to DFP, the Rational Group named several defendants in the lawsuit, “including Resorts International Holdings, RIH Propco, Eric Matejevich, Irwin Apartment Trust and Michael Frawley (Atlantic Club),” claiming these parties acted in “bad faith” by improperly executing the contract.

Rational has gone on to request a temporary restraining order from New Jersey Superior Court judge Raymond Batten, which was eventually granted just hours ago.  The details of the decision for Rational to approach this matter in the fashion can be found in the press release below:

“The Rational Group (d/b/a PokerStars) today filed a lawsuit in New Jersey Superior Court seeking to restrain the sellers of the Atlantic Club Casino and Hotel from continuing to breach the purchase agreement which was entered between the Rational Group and the seller (who are led by Colony Capital LLC) in December 2012.  This step has been taken to protect Rational Group’s rights and interests under the purchase agreement and reflects the Group’s desire to complete the acquisition of the Atlantic Club.

Judge Raymond Batten granted our request for a temporary restraining order (TRO) shortly after the complaint was submitted, confirming the continuation of the existing agreement.

The Rational Group has funded Atlantic Club shortfalls throughout the winter season since October 2012 preventing its bankruptcy and the loss of over 1,800 jobs.

The Rational Group remains entirely committed to resolving this situation, and to its investment in New Jersey, while it continues to diligently work on completing the required licensing process.”

Judging by these actions, PokerStars is not looking to back down from this lawsuit.  As you may recall the American Gaming Association had been fighting vigorously to block Rational from acquiring the Atlantic Club just a few months ago.

One has to wonder if the AGA had a hand in somehow ensuring Rational couldn’t get its hands on the Atlantic Club or if there were some other lobbying powers at work that stopped the deal from going through?

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