World Wide Web Casinos (WWWC)has been a controversial company for years. Questions regarding their ability to fulfill the promises to the some 800 private investors have been swirling around the online gaming investment community for a long time.
Those questions were abated somewhat when they went live with "Net Pirates," a site they claim to be operating out of South Africa (a curiosity itself since the South African government has no Internet gaming licensing scheme as of yet).
Still, a class action suit was filed on July 13, 1998 by investors of World Wide Web Casinos, Inc. against that company. It alleges, among other charges, fraud and breach of fiduciary duty . The court responded in early August by issuing a preliminary injunction, which gives the plaintiff's attorney access to the company's financial information and adds his name for approval of expenditures over $5,000.
According to John Zarian, the attorney for the plaintiffs, the two sides reached a tentative settlement that fell apart. Soon after the preliminary injunction was granted.
The order for the injunction was immediately appealed. Marcello DiMauro, the attorney representing Peter Michaels and WWWC, stated that he's, "confident the appellate court will reverse the grant." At worst, he feels that the plaintiffs will have to put up substantial bond of several hundred thousand dollars. "The allegations are baseless and are supported by malcontent shareholders and prior executives who left when the going got tough," DiMauro said.
Zarian would disagree. "The court was obviously satisfied that the case had a great deal of merit because the injunction was granted," he said.
Of the eight corporations named in the suit, Binky Roo Software, Inc., PJ Promotions, Inc. and Net Pirates, Inc. have had their corporate standings revoked. Digital Age, Inc. is currently in default. World Wide Web Casinos, Inc., World Wide Exchange, LLC and Tri Star Diversified Ventures, LLC are still in good standing.
To view complete copies of the class action filing and preliminary injunction, click on the links below.