Galaxy Gaming Inc., is a gaming supply company that is responsible for supplying many of the casinos in the Las Vegas area. They are also a company that recently had a lawsuit filed against them by Bank of America. In order to respond to the lawsuit, the CEO of the company released an open letter on their website they complained about the legal action. The company, which makes table games and other gaming supplies, was sued in October in the Clark County District Court, by Bank of America. The bank claims that it was involved in a fraudulent transfer of assets, totaling $1.1 million. False information was submitted to the company, which caused them to be approved for a loan, that Bank of America says they otherwise would not have been approved for. The allegations have been strongly denied by both Galaxy Gaming Inc. and the CEO of the company, Robert Saucier, but the release of the open letter shows that they are looking to take their fight to the public.
The letter that was posted on the website was addressed to the Bank of America CEO Brian Moynihan. In the letter, he complained that the company had been up-to-date with all of the payments on the loan, and there were no miss payments at the time. He also stated that the allegations that they raised were misrepresentations of the truth, claiming that no fraudulent transfer had taken place. The suit also cited the declining property values in Las Vegas, to show that the collateral that the company had placed in the backing of the loan was not worth nearly as much as once was. The collateral that they had used include the Galaxy Gaming Inc. headquarters office space, that the company had been leasing from a trust.
Saucier, in the letter, went on to detail various aspects of why he believed the lawsuit to be needless. Nevada had the local real estate crash in 2008, which resulted in many foreclosures. The company, he said, was staying in a building that became worth a fraction of its former value, which greatly change the collateral that they put forward. He also stated that he was extremely troubled by the choices that Bank of America had made, given the conversations that he had had with executives at the company prior to the loan.
Saucier argues that since they had been able to keep up with the loan to this point, and had been loyal to Bank of America, there should be no issues between the two companies. He argued that the loyalty that his company had shown to Bank of America was not returned, when they decided to follow through with a lawsuit, despite the fact that Galaxy Gaming Inc. had never missed a payment on the loan, and were contributing to the growth of the local economy as best they could. Bank of America quickly responded to the letter stating “It would be inappropriate to comment because we are involved in litigation against Galaxy Gaming seeking payment of defaulted debt.”
It looks as though the lawsuit is destined to move forward despite the pleas from Saucier and the case that he laid out in the open letter that was released. It is clear that Galaxy Gaming Inc. would like to get ahead of the story, and shape the public opinion of the lawsuit moving forward.