Part 5 of the PokerNews.com interview with Howard Lederer continues as Lederer talks in detail about Phil Ivey's $150 million lawsuit that was filed against the company on June 1st, 2011. Lederer says that Ivey was only trying to look out for himself and didn't fulfill his moral obligation - as an owner - to help return customer funds. Lederer called the lawsuit "horrific" and "devastating to the company."
Lederer said, "On a group phone call with his attorney, company attorneys and the board, I just simply said, 'The company is in peril right now. The assets are what are going to get our customers paid. And you are asking us to weaken the value of our assets, right now at our time of need?"
Ivey's lawsuit could have had a devastating effect on the company by devaluing the company's assets. Ultimately Ivey, was appointed to a seat on the board alongside Phil Gordon and Andy Bloch - sweeping the previous board out with a member vote.
The old board was to be removed after a majority vote by the owners and Ray Bitar would be replaced as CEO. A small group led by Phil Gordon, and Gordon's attorney, felt that the nine-figure shortfall was caused by the prior board's active participation.
Part 5 of the video:
Part 6 is coming up next.
Video and information courtesy of PokerNews.com.