Pictured: Josh Karsh, Matt Piers, Elizabeth Morales, and Chirag Badlani.
In a victory for HSPRD client Frances F. Gecker, the Chapter 7 bankruptcy trustee for Emerald Casino, U.S. District Judge Rebecca R. Pallmeyer ruled on Tuesday, September 30, that six former board members of the defunct Emerald Casino failed to comply with Illinois gaming regulations in breach of their agreement with the casino. Judge Pallmeyer awarded HSPRD’s client $272,000,000.00 in damages.
In her 289-page opinion, Judge Pallmeyer said that the defendants’ actions caused the Illinois Gaming Board to revoke Emerald’s gaming license, its only significant asset, thus forcing Emerald into Chapter 7 bankruptcy. She found in favor of Gecker on the claim that the six defendants violated Emerald’s amended shareholders’ agreement, which required them to comply with the Riverboat Gambling Act, and the IGB’s rules and orders.
The Court ruled that “Defendants individually made a promise—a rather unforgiving one—to Emerald to comply with IGB rules. The IGB found that Defendants had breached that contract, and the reviewing court affirmed that determination. Emerald lost its valuable license as a consequence.”
HSPRD attorneys Matt Piers, Joshua Karsh, and Chirag Badlani, paralegal Elizabeth Morales, and many other HSPRD attorneys and staff, worked for years to obtain this extraordinary result. Co-counsel on this case were attorneys from Jenner & Block. For the full story, please read the article from the Chicago Daily Law Bulletin.