News: Empire's value crumble to new lows

[Luv2DriveTT]

I belive this is horrible for the online poker industry. One of it's darlings failed to disclose information critical to it's investors prior to it's float, this makes the whole industry look dirty in the eyes of the financial industry, and ultimately in the eyes of government.

Online poker row dealt a new twist - LINK

EMPIRE ONLINE received a written warning that its vital relationship with fellow gaming group Party Gaming might be changed, but did not tell investors about it in the prospectus for a float earlier this year, writes Matthew Goodman.
The revelation of the letter is a fresh twist in the ongoing row between the two companies.

They are at loggerheads after Party separated the poker system used by its own players from that used by players at its partner companies — known as “skins” — such as Empire. The change moved all Party’s players to an improved platform with better features. Punters playing at Empire were kept on an inferior platform.

Last Monday, Empire said it would launch legal action against Party because of “damage” caused to it by the changes. Its shares have slid from 175p (€2.56) at float to close last week at 69.5p.

Meanwhile, Crystal Gaming has scrapped a planned £140m float.

[MCS]

Crap. That can't be good.

[Evan]

What a bunch of dumbasses. I'm not sure what is the stupidest part of this, that they lied in a prospectus or that they were able to cover it up this long and still let it leak.

[slavic]

It will be interesting to see if an Empire lawsuit would make any headway. I doubt it since Party likely covered itself before hand.

[henrikrh]

Just curious, since both are offshore companies since online poker is technically illegal, where do the law suits take place? Still in US courts?

[kenberman]

online poker isn't technically illegal where these companies are based. these countries (Gibraltor, Malta) also have courts.

[Luv2DriveTT]

[ QUOTE ]
online poker isn't technically illegal where these companies are based. these countries (Gibraltor, Malta) also have courts.

[/ QUOTE ]

They are both traded in England, therefore are also held accountable in the British court system.

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