Former BingoWorkz Execs File Suit over Alleged Forced Merger

4 October 2004

Two individuals formerly of Cyprus-based online gaming company BingoWorkz Ltd. have filed a lawsuit in the Ontario Superior Court of Justice against Gateway Financial Services Ltd., Gamewave Solutions Inc, Berkshire Trust Company Ltd, TGG Investments, and three individuals associated with the companies. The plaintiffs accuse the defendant companies of forcing BingoWorkz into a merger agreement and then unlawfully firing its management one year later. The plaintiffs, Derek Morran and Adi Tarkay, seek $25 million as compensation.

At the core of the case is a merger in August 2002 between I-gaming operator BingoWorkz and software developer Gamewave Solutions Inc, which is registered in Turks & Caicos. Together the firms formed TGG Investments Inc.

One year later Morran and Tarkay, directors and shareholders of BingoWorkz and directors of TGG Investments, were released from their positions due to their accusations of mismanagement, financial duress, conspiracy and fraud by TGG's management.

The plaintiffs also allege that they were bullied into entering into the merger in the first place, claiming that one of the defendants used his influence as a director of both Gamewave Solutions and transaction processor Gateway Financial Services to force the merger by threatening to cease offering Gateway's payment processing solutions to BingoWorkz.

The defendants face charges of fraud, conspiracy, breach of fiduciary duties and breach of contract.

They plaintiffs say the lawsuit in Ontario is the first of several that will be filed across multiple jurisdictions.

The defendants stress that the plaintiff's claims haven't been proven in any court of law and will comment further in a prepared statement expected later this week.