At the crux of the settlement is a $500,000 lawyers' fee and legal expenses that Aztar has agreed to pay in exchange for all claims against the company to be permanently dismissed by the court. The settlement is on the table now to avoid a formal trial and costly legal fees, according to all of the parties involved. Aztar and its directors have denied all wrong-doing or deceiving its shareholders in any way at any time, according to court documents.
Aztar officials notified shareholders yesterday that Judge Robert E. Miles of Maricopa County has set a hearing date for Nov. 21 on a settlement proposal for two consolidated lawsuits that have been holding up the merger deal and the casino sale. The suits were filed in March by shareholders Robert Glasmann and Plumber Local Union No. 519 Pension Trust Fund.
The suits allege publicly traded Aztar and its board of directors breached their fiduciary duties by not setting up an auction "or active market check" before contracting March 13 to be acquired by Las Vegas-based Pinnacle Entertainment Inc. and its wholly owned subsidiary, PNK Development 1 Inc., according to a copy of the 12-page notice of proposed settlement obtained by GlobeSt.com.
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