HOUSTON, Feb. 14, 2008 (PRIME NEWSWIRE) -- Nevada Gold & Casinos, Inc. (AMEX:UWN) today announced that the Court of Appeals for the First District, Houston, Texas, (the "Appeals Court") has ruled in its favor regarding liability in its suit against American Heritage, Inc. (d/b/a/ The Gillmann Group), Nevada Gold's former joint venture partner in Route 66 Casinos, LLC. This ruling enables the Company to pursue its fraudulent conveyance suit against American Heritage, the outcome of which will determine collectability of damages.
On April 13, 2006, a jury found that Nevada Gold suffered damages of approximately $8.3 million as a result of a breach of contract by American Heritage. Following this verdict, Nevada Gold and the Defendants filed competing motions for the entry of judgment by the Court. On October 25, 2006, the Court entered judgment. The Court found American Heritage liable to Nevada Gold for $9,165,079 (reflecting the jury's verdict, plus prejudgment interest), but held that Nevada Gold take nothing from Frederick C. Gillmann individually. Both Nevada Gold and American Heritage appealed the lower court judgment to the Appeals Court.
On July 23, 2007, the Company filed a lawsuit in Texas against American Heritage and Frederick C. Gillmann. In this case, the Company is pursuing claims against the defendants for alleged fraudulent transfers that the Company alleges the defendants made in order to make American Heritage judgment proof and to deprive the Company of the ability to enforce the judgment it obtained.
In its most recent ruling, the Appeals Court upheld that Mr. Gillmann remained not liable on a personal basis. The Appeals Court disallowed the prejudgment interest of $827,073, but upheld the ruling that American Heritage is liable to Nevada Gold. The current value of this judgment is approximately $9.5 million and will continue to accrue interest until satisfied.
About Nevada Gold & Casinos
Nevada Gold & Casinos, Inc. (AMEX:UWN) of Houston, Texas is a developer, owner and operator of gaming facilities and lodging entertainment facilities in Colorado and California. The Company recently reached an agreement to acquire the Horizon Casino Hotel in Vicksburg, Mississippi. Colorado Grande Casino in Cripple Creek, Colorado is wholly owned and operated by Nevada Gold. The Company also works with Native American tribes in a variety of capacities. Native American projects consist of a casino to be built in Pauma Valley, California for the La Jolla Band of Luiseno Indians and a casino to be developed by Buena Vista Development Company, LLC in the city of Ione, California for the Buena Vista Rancheria of Me-Wuk Indians. For more information, visit www.nevadagold.com
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