The CEO of Galaxy Gaming Inc., a Las Vegas maker of tabletop casino games, has posted a letter to the company’s website giving his side of the story in litigation brought by Bank of America. The suit accuses Galaxy of fraud for allegedly transferring ownership of the company’s headquarters, which serves as collateral for a $1.1 million business loan for which Bank of America is a creditor.
Bank of America also says that Galaxy provided false information in its loan application. Galaxy had denied the allegations and filed a counterclaim in November accusing the bank of harming Galaxy’s reputation through media reports of the litigation, which has also drawn the attention of gaming regulators.
In the letter, posted on Dec. 4, Galaxy’s CEO noted that his company has not missed a payment on the loan, despite the fact that the headquarters’ value had plummeted due to the 2008 recession, putting the property “underwater” or worth less than the cost of the loan. However, Bank of America did not respect Galaxy’s responsible repayment of the loan and instead filed suit, the letter says. “This action was without any justification and is damaging to our good name,” the CEO writes.
Bank of America declined to comment about the letter. The amount of damages Galaxy is seeking in its countersuit is not clear.
When a business is facing litigation against a huge national corporation like Bank of America, it is important to hire an experienced business litigation attorney to counter the other party’s large resources.
Source: VEGAS INC, “Gaming CEO posts open letter to bank chief over lawsuit,” Steve Green, Dec. 4, 2012