Galaxy Gaming Accuses Banks of Using Bullying
CEO of the popular Las Vegas casino supply company, Galaxy Gaming Incorporated, today accused Bank of America of utilizing bullying tactics that have gone on to cause additional scrutiny by a wide variety of different gaming regulators. He also stated that Galaxy would be countersuing the bank over the dispute of the $1.1 million loan. Bank of America last month filed the lawsuit in the Clark County District Court, stating that in 2007 and made a loan to Galaxy Gaming LLC, during which false statements were made about the ownership of the limited liability company. The bank asserts that they were victimized, while the gaming supply company states that the bank utilize bullying behavior, and increased scrutiny from gaming regulators as a way to bully the company into paying.
The lawsuit against Galaxy Gaming Inc. also includes a trust benefiting the daughter of the company CEO, Robert Saucier. The suit demands that the company paid the current balance of the loan that they were given, plus the interest on the loan, as well is the legal fees that the bank incurred through the process. Saucier, who lives in Spokane Washington but also reside sometimes in Las Vegas, has managed the company in recent years, and was recently promoted to CEO. Shortly following the release of the lawsuit information, Saucier release a statement regarding the process.
“Our position is that this is completely false and we examined the claims and made the decision that Bank of America with its bullying tactics is trying to get us to be responsible for a note that we never agreed to be involved in,” Saucier said.
The statement came exactly one day after the company reported a quarterly profit, as Las Vegas continues to see its visitation levels grow as the country’s economy evens out in the wake of the 2008 economic collapse. Currently, the company does list the Bank of America loan on its balance sheets, and is considered to be one of the components that make up the listed long-term debt that the company has listed. They list the balance at $1.1 million as of September 30. They are currently making monthly payments of $9159, and are expecting to make a balloon payment of $1 million sometime during 2017, although the bank would like to start receiving larger payments before that time. The company maintains that the agreement that they have with Bank of America will remain in place, and that they will fight the lawsuit that is been placed against them.
We intend to vigorously defend ourselves in this matter and to pursue all available remedies against B of A, including but not limited to, recovery of damages caused by them. Our executive leadership team believes the matter will be resolved favorably and without material effect to our business, however, we could be subject to penalty interest and acceleration of the outstanding amount if unsuccessful,” Galaxy Gaming Inc. said in a very recent regulatory filing.
It will be interesting to see how the lawsuit plays out in the end, and whether or not the company continues to fight it moving forward.