Gaming VC Boss Steps Down

Published: Thursday, November 02, 2006 Online-Casinos.com

GAMING VC BOSS STEPS DOWN AMID REPORTS OF LITIGATION

US company claims breach of commission agreement


Online gambling group Gaming VC and an American merger and acquisition company called Fort Knox Consulting have locked horns and seem destined for litigation following claims by the latter regarding a 5 percent commission for M&A work.

Heightening speculation on the Germany-focused operator are reports that CEO Steve Barlow has resigned after being named, together with former director Scott Miller, in the Fort Knox suit which identifies them as individual defendants "based on alleged tortuous interference with the alleged agreement".

Gaming VC has denied there is any direct link between the resignation of chief executive Steve Barlow and the recently-filed lawsuit in the US.

In an announcement, the online casino operator announced that Barlow was stepping down with immediate effect. He will remain with the company as a non-executive director.

Fort Knox Consulting filed suit in the state district court of Massachusetts alleging that Gaming VC had failed to acknowledge an alleged agreement between the group and Fort Knox regarding a 5 percent commission for M&A work.

Fort Knox is seeking unspecified damages, and Gaming VC spokesmen said it will "rigorously defend the suit".

A spokesperson said the law suit "did not spur the board change". He added; "The share price has taken a hammering of late. Barlow is a major shareholder and he thought it was time for a change at the top."