PartyGaming plc has filed a lawsuit against the former owners of Empire Online, alleging that the company failed to deliver on certain income as agreed in the terms of its acquisition by PartyGaming in 2006.
According to court documents obtained by Bloomberg, PartyGaming's lawsuit against Livermore Investments Group was filed in London last month, seeking damages in an amount running into six figures.
At the time of the company's acquisition of Empire Online in December 2006, PartyGaming said that it expected the acquired businesses and assets to generate clean EBITDA of at least $6.0 million.
The company acquired the assets for a consideration of 83,325,934 new ordinary shares in PartyGaming, which equated to approximately $48 million based upon the then average share price of 29.32 pence. A further $10 million was also retained in escrow, to be released in instalments over the following 18 months subject to certain conditions.
The Empire Online assets comprised a substantial number of its gaming websites including the poker site NoblePoker.com and three online casino sites, EnterCasino.com, Clubdicecasino.com, and Carnivalcasino.com.
Livermore Investments is headed by CEO Noam Lanir, the founder and CEO of Empire Online, with Richard Barry Rosenberg continuing in his role as Non-Executive Chairman.