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Refco Suing Cantor Gaming Over Mobile Tech
Friday July 19,2013 : MOBILE GAMBLING TECHNOLOGY DISPUTE HEADED FOR COURT
Troubled futures broker suing Cantor Gaming over decade-old technology investment
The bankrupt futures broker Refco has launched a legal action in a New York District Court against Cantor Gaming over a mobile gambling technology investment it made in the company’s predecessor over ten years ago.
The issue turns on the alleged non-payment of compensation for proprietary technology which Cantor acquired and successfully exploited.
Lawyers for Refco contend that the company acquired a 10 percent interest in Cantor Index Holdings after it invested $8 million in the subsidiary. The company successfully developed technology for mobile and other betting applications, but was shut down by Cantor Gaming, which transferred the assets and intellectual property to itself...all without properly paying Refco its share of the development.
Time has shown that the technology played a major role in the success of Cantor Gaming operations, something the company has acknowledged, says Refco.
Millions of dollars are being claimed on grounds that Cantor Gaming "...drained Cantor Index Holdings of its assets and then co-opted the intellectual property for its gambling businesses.”
"Cantor Entertainment Technology’s success in the mobile gaming industry and its potential IPO rely heavily on these technologies and we seek recovery for the bankruptcy estate the fair value of Refco’s investment,” Refco court submissions claim.
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