Jury Renders Verdict in Favor of GameTech International, Inc. in Lawsuit Against Trend Gaming Systems, LLC
November 16 2009 - 7:06PM
PR Newswire (US)
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. DATASOURCE: GameTech International, Inc. CONTACT:
Investor Relations, Marcia Martin, or Sales and Marketing, Tim
Minard, both of GameTech International, Inc., +1-775-850-6000 Web
Site: http://www.gametech-inc.com/
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