Jury Renders Verdict in Favor of GameTech International, Inc. in Lawsuit Against Trend Gaming Systems, LLC

Mon Nov 16, 2009 7:06pm EST
 
[-] Text [+]
Jury Renders Verdict in Favor of GameTech International, Inc. in Lawsuit
Against Trend Gaming Systems, LLC




RENO, Nev., Nov. 16 /PRNewswire-FirstCall/ -- On November 12, 2009, a jury
rendered a verdict in favor of GameTech International, Inc. and against Trend
Gaming Systems, LLC, in a case tried before the United States District Court
for the District of Arizona.  The jury awarded GameTech $38,697 and $782,641
on its two claims against Trend.  The Ninth Circuit Court of Appeals had
previously ruled that GameTech is entitled to pre-judgment interest on the
later figure, which represents funds that Trend had improperly withheld from
GameTech in August and September of 2002. The final award of damages, however,
is subject to court approval and entry of a judgment.  GameTech also plans to
petition the court for an award of legal fees and costs. 

The lawsuit, first filed by GameTech in March of 2001, concerned an agreement
between GameTech and Trend for the distribution of GameTech's products in the
state of Texas.  GameTech initially sought a declaratory judgment that it was
not in breach of its agreement with Trend, and later sought damages on claims
that Trend had breached the distribution agreement and wrongfully withheld
funds that were owed to GameTech.  Trend asserted counterclaims against
GameTech, alleging that GameTech had breached its contractual obligations and
wrongfully terminated the distribution agreement.

According to GameTech's attorney, E. Jeffrey Walsh of Greenberg Traurig LLP,
the jury rejected Trend Gaming System's claim that GameTech had wrongfully
terminated for cause the parties' distribution agreement in August of 2002,
rejected Trend's other claims that GameTech had breached that agreement at
earlier points in time, and instead awarded GameTech with contract damages for
Trend's willful and deliberate breach that, with accrued interest, will exceed
$1,350,000 before assessment of attorney's fees and costs.  "This verdict
comes after years of expensive litigation, and follows a retrial in which
GameTech was finally able to tell the full story of Trend's and its managing
member Steven Hieronymus' 2002 plan to wrongfully divest GameTech of its
hard-won business in Texas, just as Mr. Hieronymus, acting through a related
company, had done to GameTech in Virginia," Walsh said.  "The jury understood
that a contract is a contract, that a distributor cannot decide to willfully
disregard its contract obligations when it finds it advantageous to do so, and
that a manufacturer has the right to terminate a distributor contract for
cause when the distributor refuses to cure its defaults after notice.  The
jury also considered and wisely rejected Trend's contention that GameTech was
violating the Texas Bingo Enabling Act by enforcing its rights under the
distribution agreement, including the right to recover its wholesale price
from the distributor.  The jury's verdict for GameTech means that all of
GameTech's actions with regard to Trend's misconduct were in strict compliance
with that law."

"The jury's verdict is gratifying," said Jay Meilstrup, GameTech's President
and Chief Executive Officer. "It validates our position that GameTech properly
terminated its relationship with Trend Gaming Systems and that Trend did not
fulfill its contractual obligations.  We are very pleased with the outcome of
this trial, which will allow us to put the matter behind us as we continue to
execute our strategies for the long-term success of our business."

About GameTech International, Inc.
GameTech International, Inc. is in the business of designing, manufacturing,
and marketing computerized bingo and gaming equipment, systems, and services.
Under the GameTech® product brand the company provides electronic bingo
systems and equipment, and is an innovator in advanced wireless gaming
applications and devices. Under the Summit Gaming(TM) product brand the
Company provides video lottery terminal devices, Class III gaming machines,
and related software and content. GameTech International, Inc. serves
customers in 43 U.S. States, Canada, Japan, Mexico, Norway, Philippines, and
the United Kingdom. The company was incorporated in 1994 and is headquartered
in Reno, Nevada. 

Statements in this press release that are not historical facts are intended to
be forward-looking statements subject to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. GameTech cautions that these
statements are qualified by important factors that could cause actual results
to differ materially from those reflected by the forward-looking statements
contained herein. Such factors include risks associated with doing business in
a regulated industry, our ability to retain customers and secure new
customers, risks associated with rapid technological change, and those
disclosed in documents filed by the Company with the Securities and Exchange
Commission, including the Company's most recently filed Annual Report on Form
10-K and Quarterly Reports on Form 10-Q. GameTech does not intend, and
undertakes no obligation, to update our forward-looking statements to reflect
future events or circumstances.



SOURCE  GameTech International, Inc.

Investor Relations, Marcia Martin, or Sales and Marketing, Tim Minard, both of
GameTech International, Inc., +1-775-850-6000

 

Featured Broker sponsored link

Editor's Choice

A selection of our best photos from the past 24 hours.  Slideshow 

Most Popular on Reuters

  • Articles
  • Video