Florida Gaming Corporation
Court: Delaware Chancery Court
Abraham, Fruchter & Twersky, LLP represents Florida Gaming Corporation (“Florida Gaming” or the “Company”) shareholder (“Plaintiff”) in a shareholder derivative action pending in the Delaware Chancery Court entitled Silverberg v. Collet, et al., C.A. No. 292-VCN (the “Delaware Action”). Plaintiff in the Delaware Action alleges that Florida Gaming’s officers and directors breached their fiduciary duties to the Company by, inter alia, agreeing to sell the Company’s only operating asset, Florida Gaming Centers, Inc. (“Centers”), for inadequate compensation and also for engaging in numerous self-dealing transactions which constituted a waste of the Company’s assets. Plaintiff alleges that defendants agreed to sell Centers to Silvermark LLC (“Silvermark”) in a transaction valued at approximately $129.4 million. However, a recent valuation by the investment bank, Jefferies LLC, demonstrates a significantly higher value for Centers of approximately $191.1 million or more than 47% higher than the value represented by the proposed Silvermark transaction.
Following a request (available here September 19, 2013 Letter to the U.S. Trustee) made by Abraham, Fruchter & Twersky, LLP the Office of the United States Trustee (the “U.S. Trustee”) has invited shareholders of Florida Gaming Corporation (“Florida Gaming” or the “Company”) to express their interest in serving on a committee of equity security holders (“Equity Committee”) in connection with Florida Gaming’s recent bankruptcy filing in the United States Bankruptcy Court for the Southern District of Florida (the “Bankruptcy Court”), Case No. 13-29598-RAM.