PokerStars Alleges Breach in Contract with Atlantic Club

That PokerStars deal to purchase the Atlantic Club in New Jersey may not be completely dead in the water.

On Monday the Rational Group, which owns PokerStars and Full Tilt Poker, filed a lawsuit in New Jersey Superior Court seeking to restrain the sellers of the Atlantic Club from allegedly breaching the purchase agreement that was made in December 2012.

This is following the Atlantic Club’s announcement they were terminating the agreement last week.

“This step has been taken to protect Rational Group's rights and interests under the purchase agreement and reflects the Group's desire to complete the acquisition of the Atlantic Club,” said Eric Hollreiser, Head of Corporate Communications for PokerStars.

According to the statement the Rational Group funded Atlantic Club shortfalls throughout the winter season since October 2012, preventing bankruptcy and the loss of over 1,800 jobs.

Judge Raymond Batten has already granted the Rational Group’s request for a temporary restraining order.

The entire complaint, which you can read here, offered several other interesting bullet points:

  • PokerStars alleges they have already paid the Atlantic Club 2/3 of the purchase price in advance payments.
  • The Rational Group received no notice from the Atlantic Club they were going to terminate the purchase agreement.
  • The purchase price for the struggling Atlantic Club was only $15 million.

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