Cryptologic sued for $800 million
By Paul
Beleaguered gambling software firm Cryptologic faces fresh controversy, this time over an lawsuit filed against the company on December 31 last year, which the company failed to disclose at their their last financial results announcement on January 7th this year, according to Gambling Magazine. To be fair to Cryptologic, a press release posted on the company’s site of January 11 mentions the lawsuit, which it describes as “frivolous” The press release names the plaintiff as Casino Monte Carlo.

The lawsuit claims among other things, negligence and/or fraud, breach of trust and breach of fiduciary duty. The plaintiff claims that misrepresentations by Cryptologic’s agents led to substantial loss of revenues, and that Cryptologic’s agents, foreign wholly-owned subsidiaries such as Wagerlogic Limited and CCMH Ltd., are in fact, a means of avoiding liability.

The plaintiffs allege that their revenues plummeted, compared to results achieved with previous software from a different vendor.

The lawsuit also claims that Cryptologic misused confidential customer information to divert the plaintiffs’ customers to Cryptologic, and that Cryptologic failed to provide adequate reporting figures and accounting data.

One of the claims refers to another recent controversy surrounding Cryptologic and William Scott, who Cryptologic (or its agents) had charged with operating a sports book for the plaintiffs. William Scott had been convicted of, and jailed for, racketeering in the US.

The lawsuit also claims that Cryptologic’s software was full of serious bugs, which meant that players couldn’t download or install it properly, and that Cryptologic failed to provide technical support to the end-users.

According to the lawsuit, Cryptologic had also been running an illegal operation in Toronto, where they had their servers, accounting and customer support.

At time of press, Cryptologic were unavailable for comment.

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