A federal appeals court judge reinstated a lawsuit filed by two former employees of slot manufacturer International Game Technology that claims the two were fired for leaking information detrimental to IGT concerning a merger agreement.

The two employees, Shawn and Lena Van Asdale, allegedly questioned company officials about information that may have been withheld from shareholders concerning its acquisition of Anchor Gaming in 2001. The couple, both IGT lawyers, claim the company fired them after they raised questions about the value of Anchor patents when merger discussions were ongoing. IGT claims they were fired for poor performance.

The lawsuit was dismissed by summary judgment by a U.S. District Court. Last week’s decision by the 9th U.S. Circuit Court of Appeals overturns that decision.

“We conclude that the Van Asdales raised a genuine issue of material fact regarding the cause of their termination and that summary judgment should not have been granted, Circuit Court Judge Jay Bybee wrote in the decision. “We conclude that the Van Asdales’ theory of fraud approximates a securities fraud claim.” The judge added that the decision is by no means to be considered support of the plaintiffs’ original claim.

“It has always been and remains IGT’s position that the Van Asdale's claims are without merit and IGT intends to vigorously defend itself against these claims,” IGT Marketing VP Ed Rogich said last week in an interview with the Reno Gazette-Journal.

By Staff