Europa Cruises Corporation Reports Favorable Court Ruling in Major Class Action Lawsuit
PR NEWSWIRE - July 01, 2002 08:50
MADEIRA BEACH, Fla., Jul 1, 2002 /PRNewswire-FirstCall via COMTEX/ -- Europa Cruises Corporation (OTC Bulletin Board: KRUZ) announced today that on June 26, 2002, the United States District Court for the District of Nevada entered an important Order in Poulos v. Caesars World, Inc., et al. (Case No. CV-S-94-1126-RLH), a case in which two subsidiaries of the Company are also defendants. The federal court denied the plaintiffs' Motion for Class Certification.
In 1994, William H. Poulos filed a Complaint in the U.S. District Court for the Middle District of Florida against two subsidiaries of the Company, Europa Cruises of Florida 1, Inc. and Europa Cruises of Florida 2, Inc., and various other defendants under the civil enforcement provisions of the Racketeer Influenced and Corrupt Organizations Act (RICO) and under state common law theories of fraud and deceit. In December 1994, the action was transferred to the U.S. District Court for the District of Nevada. On March 18, 1998, the plaintiffs filed a Motion for Class Certification. The plaintiffs filed their complaint against manufacturers, distributors, operators and owners of electronic slot machines and video poker machines and owners and operators of casinos and cruise ships where such machines are played. The plaintiffs alleged that the defendants defrauded them and other potential class members by creating and operating electronic slot and video poker machines which lead players to believe that they operate in the same manner as table poker and mechanical reel slots. The plaintiffs further alleged, among other things, that the manufacturers of the electronic gambling machines, in concert with the owners and operators of casinos and cruise ships, created false perceptions about the nature of the electronic gambling devices through the labeling of the devices themselves and perpetuated these false perceptions through advertising and promotions and by concealing information from the public. The plaintiffs sought damages in excess of one billion dollars against all defendants.
In denying the plaintiff's motion for class certification, the federal court found that the plaintiffs had failed to satisfy the predominance and superiority requirements for class certification. The plaintiffs can seek leave to appeal the ruling and can still pursue individual cases.
Deborah A. Vitale, President and Chairman of the Board, commenting on the ruling stated: "The Company and/or one of its subsidiaries is currently a defendant in only three remaining lawsuits. (This does not include two lawsuits filed against the Company in Delaware recently by Messrs. Illius and Duber, two former directors of the Company.) The Nevada Court's ruling is a favorable one for the Company in this case. Assuming an appeal of the Court's ruling is not successful, this ruling requires each plaintiff claiming damages to file a separate lawsuit and prove his damages in a separate trial. As most people know, lawsuits are filed as class actions to avoid the expenses inherent in trying numerous cases with smaller damages separately. The failure to obtain class certification in such cases is seen as a major blow for the plaintiffs and often spells an end to such cases. Therefore, while this development may not be a material event for the larger casinos, for a small company such as ours, this ruling is very welcome news." |
