Thursday, November 12, 2009.
SOURCE: GameTech International, Inc.
Jury renders verdict in favor of GameTech International, Inc. in lawsuit against Trend Gaming Systems, LLC
The lawsuit, first filed by GameTech in March of 2001, concerned
an agreement between GameTech and Trend for the distribution of GameTech’s products in the
state of Texas. GameTech initially sought a declaratory judgment that it was not in breach of
its agreement with Trend, and later sought damages on claims that Trend had breached the distribution
agreement and wrongfully withheld funds that were owed to GameTech. Trend asserted counterclaims against
GameTech, alleging that GameTech had breached its contractual obligations and wrongfully terminated
the distribution agreement.
According to GameTech's attorney, E. Jeffrey Walsh of Greenberg
Traurig LLP, the jury rejected Trend Gaming System's claim that GameTech had wrongfully terminated
for cause the parties' distribution agreement in August of 2002, rejected Trend's other claims that
GameTech had breached that agreement at earlier points in time, and instead awarded GameTech with
contract damages for Trend's willful and deliberate breach that, with accrued interest, will exceed
$1,350,000 before assessment of attorney's fees and costs. "This verdict comes after years of
expensive litigation, and follows a retrial in which GameTech was finally able to tell the full
story of Trend's and its managing member Steven Hieronymus' 2002 plan to wrongfully divest
GameTech of its hard-won business in Texas, just as Mr. Hieronymus, acting through a related
company, had done to GameTech in Virginia," Walsh said. "The jury understood that a contract
is a contract, that a distributor cannot decide to willfully disregard its contract obligations
when it finds it advantageous to do so, and that a manufacturer has the right to terminate a
distributor contract for cause when the distributor refuses to cure its defaults after notice.
The jury also considered and wisely rejected Trend's contention that GameTech was violating the
Texas Bingo Enabling Act by enforcing its rights under the distribution agreement, including the
right to recover its wholesale price from the distributor. The jury's verdict for GameTech means
that all of GameTech's actions with regard to Trend's misconduct were in strict compliance with that law."
"The jury's verdict is gratifying," said Jay Meilstrup,
GameTech's President and Chief Executive Officer. "It validates our position that
GameTech properly terminated its relationship with Trend Gaming Systems and that
Trend did not fulfill its contractual obligations. We are very pleased with the
outcome of this trial, which will allow us to put the matter behind us as we continue
to execute our strategies for the long-term success of our business.”
About GameTech International, Inc.
Statements in this press release that are not historical facts are intended
to be forward-looking statements subject to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. GameTech cautions that these
statements are qualified by important factors that could cause actual results to
differ materially from those reflected by the forward-looking statements contained
herein. Such factors include risks associated with doing business in a regulated industry,
our ability to retain customers and secure new customers, risks associated with rapid technological
change, and those disclosed in documents filed by the Company with the Securities and Exchange Commission,
including the Company's most recently filed Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
GameTech does not intend, and undertakes no obligation, to update our forward-looking statements to reflect
future events or circumstances.
Investor Relations: Marcia Martin 775.850.6000
Sales and Marketing: Tim Minard 775.850.6000
GameTech International, Inc. is in the business of designing, manufacturing,
and marketing computerized bingo and gaming equipment, systems, and services.
Under the GameTech® product brand the company provides electronic bingo systems
and equipment, and is an innovator in advanced wireless gaming applications and
devices. Under the Summit Gaming™ product brand the Company provides video lottery
terminal devices, Class III gaming machines, and related software and content. GameTech
International, Inc. serves customers in 43 U.S. States, Canada, Japan, Mexico, Norway, Philippines,
and the United Kingdom. The company was incorporated in 1994 and is headquartered in Reno, Nevada.