Prospective buyer of The Meadows sues casino's owner
A Berks County company that announced in May it would buy a Washington County casino and racetrack for $475 million says it is suing the owner to get back the $10 million it paid for a related consulting agreement.
Gaming & Leisure Properties Inc. announced in a news release and a notice filed Wednesday with the Securities and Exchange Commission that it sued Cannery Casino Resorts LLC in federal court in the Southern District of New York. The clerk's office there was unable to find any lawsuit filed under Gaming & Leisure Properties' name.
Cannery, based in Las Vegas, said in its own release that it “believes that the lawsuit is without merit and intends to defend against it vigorously.”
Gaming & Leisure Properties said in the SEC notice that it sued Cannery on Monday “alleging, among other things, fraud, breach of the agreement and breach of the related consulting agreement entered into at the same time.”
In addition to the $10 million, the company is seeking unspecified damages, the notice says.
Spokesmen for both companies didn't respond to messages seeking comment.
The SEC notice says Gaming & Leisure can't predict what effect the lawsuit will have on its proposed purchase of The Meadows Racetrack and Casino in North Strabane.
Cannery Casino Resorts “intends to take all available measures” to ensure the sale goes through by Nov. 13, the company's release said.
Gaming & Leisure Properties is a spinoff of Penn National Gaming Inc. that leases gambling properties to other companies that actually operate racetracks and casinos. Cannery Casino Resorts also owns two casinos in Nevada.
Brian Bowling is a staff writer for Total Trib Media. He can be reached at 412-325-4301 or [email protected].