Trump Still Battling Former Investors Over Casino Stock Money
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This is not the best time for Donald Trump to be dealing with financial strains. The business kingpin is on the verge of having to pay former investors $4.1 million in a past settlement lawsuit.
The lawsuit has been brought on by seventeen former Trump casino shareholders. The lawsuit claims that the shareholders were never paid as part of a bankruptcy settlement. Trump’s lawyers are disputing the claim.
The law has already sided with the former shareholders. A federal judge has ruled in their favor back in 2007, and an appeal has been denied by a federal appeals court last month.
The lawsuit stems from an agreement that was reached between shareholders and Trump Hotels & Casino Resorts Inc. when the company filed for bankruptcy protection back in 2005. The seventeen shareholders involved in the lawsuit claim they were excluded from that deal.
Trump’s lawyers paint a different picture than that of the shareholders. “What these seventeen are trying to do, to use a nontechnical term, is double dip, because when they sold their stock they got their money,” said the company’s general counsel, Robert M. Pickus.
Now, since they have not received their money, the shareholders have asked a federal bankruptcy court on Monday to liquidate the three Trump casinos if payment is not made by the end of the week.