Entertainment Gaming Asia Inc. (NASDAQ: EGT) (“Entertainment Gaming Asia” or “the Company”), a leading gaming company focused on emerging gaming markets in Pan-Asia, today announced that the civil action complaint filed against the Company and certain of its current and former directors and officers on March 26, 2010 (as subsequently amended on May 28, 2010 and December 20, 2011) by certain former shareholders of the Company including Prime Mover Capital Partners L.P., Strata Fund L.P., Strata Fund Q.P. L.P., and Strata Offshore Fund, Ltd (collectively, the “Plaintiffs”) in the United States District Court for the Southern District of New York (the “Complaint”) has been concluded with all claims dismissed against all parties.
As previously announced, on December 18, 2013, the Second Circuit had affirmed by Summary Order the District Court’s September 28, 2012 judgment granting the dismissal of the Plaintiffs’ Complaint. The Plaintiffs did not request a rehearing of the Summary Order in the permitted time and therefore, the civil action has been concluded. A detailed summary of the Complaint can be found in the Company's Quarterly Report on Form 10-Q filed with the SEC on November 14, 2013.
Also today, the Company announced that it is in the final stages of its annual valuation review of its Dreamworld Pailin facility and gaming assets in compliance with U.S. Generally Accepted Accounting Principles (GAAP). While operating losses for this property have narrowed in recent months due to strategic improvements in the operating model, the future outlook remains challenging. As a result, on January 17, 2014, the board of directors of the Company concluded that the Company is required under GAAP to record an impairment charge of approximately $2.5 million as of December 31, 2013 related to the Company’s Dreamworld Pailin operations.
Dreamworld Pailin, a casino developed and operated by the Company, opened in May 2012. It is located in an emerging gaming market in the Pailin Province of Northwestern Cambodia next to the Thailand border. The Company saw the opportunity in this regional market but has determined that there is presently an insufficient level of natural player traffic.