A Delaware corporation claims it faces a lost chance to make more than $2 million after a company is threatening to renege on its agreement to purchase numerous gaming units that would have been installed in electronic games on Indian reservations in Oklahoma.
AMI Entertainment Network filed a lawsuit April 17 in U.S. District Court for the Eastern District of Pennsylvania against GPS Global.
In its complaint, AMI alleges it agreed to help GPS by supplying it with hardware components that would be utilized in bingo, lotto and pull tabs in gaming establishments on Indian land in Oklahoma. GPS sought AMI’s help after it decided to enter Oklahoma’s gambling market in 2011, according to the complaint.
AMI, which had expertise in developing video game software and in constructing video gaming terminals in bars, restaurants and casinos, agreed to provide the necessary merchandise to GPS for $4,500 per unit, the suit states.
On Jan. 9, 2012, GPS issued a purchase order for 500 units for a total cost of $2,250,000, the complaint says.
After receiving the purchase order, AMI claims it sent two sample units to GPS and was ready to send the remaining merchandise soon thereafter. However, GPS refused to purchase the remaining units, according to the complaint.
AMI believes that a lawsuit filed against it may have played a role in GPS’s refusal to pay for the units. A GPS affiliate had entered into an agreement for software modification and development with AMI. Now, that agreement is at the center of a lawsuit the affiliate filed against AMI in district court.
“AMI reminded GPS Global that, despite the pending litigation over the Development Agreement, it expected GPS Global to honor the valid and binding Purchase Order for 500 units pursuant to the component agreement,” the suit states.
In its complaint, AMI alleges breach of contract against GPS.
In addition to the money it claims it is owed, AMI seeks costs, interest and other relief the court deems just.
Ronald J. Shaffer and Amit Shah of Fox Rothschild in Philadelphia will be representing it.
U.S. District Court case number: 2:13-cv-2049.