Raider v Archon Corporation, et al.
Raider v Archon Corporation, et al.
A-15-712113-B

Frequently Asked Questions

 

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  • Based on information obtained by the class representative, you may have been a holder of Archon’s preferred stock as of the close of business on August 31, 2007. The notice explains that the Court has allowed, or “certified,” a class action lawsuit that may affect you. You may have legal rights and options that you must exercise prior to March 4, 2020.

     
  • Archon sought to redeem its preferred stock as of the close of business on August 31, 2007. It paid a redemption price of $5.241 per share. The Plaintiff claims that under the contract governing the preferred stock, the Certificate of Designation, the redemption price should have been $8.69 per share and that dividends have continued to accrue since August 31, 2007 because the redemption price was not paid in full. The Plaintiff has also asserted claims for unjust enrichment and breach of fiduciary duty against Archon Corporation and/or the Lowdens.

    Defendants deny all of the Plaintiff’s claims. They deny that the redemption price should have been $5.241, that dividends have continued to accrue, and the allegations of the other claims brought against them. Defendants further contend that this case is barred because it was filed too long after the August 31, 2007, redemption, and that it was improper to certify this case as a class action.

  • In a class action lawsuit, one or more people called “Class Representatives” (in this case Dan Raider) sue on behalf of other people who have similar claims. The people together are a “Class” or “Class Members.” The person who sued—and all the Class Members like them—are called the Plaintiffs. The company and individuals they sued (in this case Archon and the Lowdens) are called the Defendants. One court resolves the issues for everyone in the Class—except for those people who choose to exclude themselves from the Class.

  • The Court decided that this lawsuit can be a class action and move towards a trial because it meets the requirements of Rule 23 of the Nevada Rules of Civil Procedure, which governs class actions in Nevada courts. Specifically, the Court found:

    • There are hundreds of members of the class and the class is sufficiently numerous that joinder of all members is impractical;
    • There are questions of law and fact that are common to the Class;
    • The claims of the Class Representative are typical of the claims of the Class;
    • The Class Representative and his lawyers will fairly and adequately represent the interest of the Class; and
    • The questions of law or fact common to the members of the Class predominate over any questions affecting any individual members and a class action is superior to other available methods for the fair and efficient adjudication of the controversy.
     
  • The Plaintiff is asking for damages in the form of money payments to each class member. He is also requesting certain equitable relief. By way of equitable relief, Plaintiff’s Complaint requests that until there is full payment of all amounts owed, a constructive trust should be imposed on the assets of Archon for any money that continues to be owed to Plaintiff and the members of the Class and that an injunction should be put in place enjoining (1) the payment of dividends to the common stockholders, (2) the payment of bonuses or extraordinary compensation to the Lowdens or any other Archon officer, director or executive and (3) the transfer of assets except the ordinary course of business.

  • There are many other issues left that the Court has not decided. By establishing the class and issuing the Notice, the Court is not suggesting which side will win or lose on the remaining issues. The Plaintiff must still prove his claim.

    No money or other benefits are available now. There is no guarantee that money or other benefits will be obtained on behalf of class members. If they are, you will be notified about how to share in the benefits.

  • You are a member of the Class if you were a holder of Archon preferred stock as of the close of business on August 31, 2007 and you were:

    • Not an officer or director of Archon;
    • Not Paul Lowden’s children, siblings or his investment company (LICO)
    • Not Stephen Haberkorn, P. Michael Jung, or Gretchen Lee McGowen
    • Not a plaintiff in D.E. Shaw, et al. v. Archon Corporation, United States District Court for the District of Nevada, Case No. 2:07-CV-01146-PMP-LRL, or Leeward, L.P. v. Archon Corporation United States District Court for the District of Nevada,  Case No. 2:08-CV-00007-PMP-LRL.
  • If you want to retain the right to potentially receive money or other benefits from this lawsuit, you don’t have to do anything now. By doing nothing, you are staying in the class. If you remain in the class and the Plaintiff obtains money or other benefits, you will be notified about how to apply for a share (or how to ask to be excluded from any settlement). If Archon and the Lowdens win, you will receive nothing. Keep in mind that if you do nothing now, regardless of whether the Plaintiff wins the trial, you will not be able to sue, or continue to sue Archon and the Lowdens—as part of any other lawsuit—about the same issues that are the subject of this lawsuit. This means that with respect to the redemption price and the other issues in this case, if you do nothing, you will be legally bound by all of the orders the Court issues and judgments the Court makes in this class action.

     
  • You can ask to be excluded for any reason. One reason you may choose to exclude yourself is you already have your own lawsuit against Archon and the Lowdens and want to continue with it. In that event, you need to ask to be excluded from the class. If you exclude yourself from the class—which also means to remove yourself from the class and is sometimes called “opting-out” of the class—you will not get any money or other benefits from this lawsuit, even if the Plaintiff obtains them because of a pretrial ruling or trial or from any settlement (that may or may not be reached) between Plaintiff and Defendants.

    However, you may then have the right to sue Archon and the Lowdens about the redemption price, Archon’s continuing liability for dividends and the other issues presented in this lawsuit. If you exclude yourself, you will not be legally bound by the Court’s orders and judgments in this class action.

    If you start your own lawsuit against Defendants after you exclude yourself, you will have to either represent yourself, or hire and pay your own lawyer for that lawsuit.

    The deadline to exclude is March 4, 2020.

  • To be excluded, you must send an “Exclusion Request” in the form of a letter sent by mail, stating that you want to be excluded from Raider v. Archon Corporation, et al. Be sure to include your name and address, and sign the letter. You may also find an Exclusion Request form in the Important Documents section. You must mail your Exclusion Request postmarked by March 4, 2020 to: Raider v Archon Corporation, et al, EXCLUSION, care of JND Legal Administration, P.O. Box 91332, Seattle, WA 98111. You mail also e-mail your Exclusion Request to Info@ArchonPreferredClassAction.com. Your exclusion form submitted by email is not effective until you receive an email confirmation from the Administrator.

  • The Court decided that Steven E. Goren and the Law Offices of Steven J. Parsons are qualified to represent the class. Together they are called “Class Counsel.” They are experienced in handling similar class action cases. More information about these attorneys, their practices and their experience is available at www.gorenlaw.com and www.sjplawyer.com.

    You do not need to hire your own lawyer because Class Counsel is working on your behalf. But, if you want your own lawyer, you will have to pay that lawyer. For example, you can ask him or her to appear in Court for you if you want someone other than Class Counsel to speak for you.

  • Class Counsel will only be paid if they are successful in getting money or other benefits for the class. If Class Counsel are successful, they will ask the Court to award them their fees and expenses. You won’t have to pay these fees and expenses out of your own pocket. If the Court grants class counsels’ request, the fees and expenses would be either deducted from any money obtained for the class or paid separately by Archon and/or the Lowdens.

    It is Defendants’ position that class members may be liable for Defendants’ costs incurred in this action in the event Defendants prevail. Plaintiff disagrees and believes that class members do not have any potential liability for such costs.

  • If the case is not resolved by a settlement, the Court will decide who is right by pretrial rulings and/or trial. If the case is not resolved by settlement or a pretrial ruling, the Class Counsel will have to prove the Plaintiff claims at trial. The trial will be in the Eighth Judicial District Court for the State of Nevada, in Las Vegas, NV. No trial date has been set yet. During the trial, a Jury will hear all of the evidence to help them reach a decision about whether the Plaintiff or Defendants are right about the claims in this lawsuit. There is no guarantee that the Plaintiff will win or that he will get any money for the Class.

    You do not need to attend the trial. Class Counsel will present the case for the Plaintiff and Archon and the Lowdens will present their defenses. You or your own lawyer are welcome to come and observe at your own expense.

  • If you want more detailed information you can visit the Important Documents section where you will find the Court’s Order Certifying the Class, the Complaint that Plaintiff submitted, Defendants’ Answer to the Complaint, as well as an Exclusion Request form and other case related documents. You may also ask questions by calling 1-888-551-9712 or writing to:

    Raider v Archon Corporation, et al
    c/o JND Legal Administration
    P.O. Box 91332
    Seattle, WA 98111

For More Information

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Mail

Raider v Archon Corporation, et al
c/o JND Legal Administration
P.O. Box 91332
Seattle, WA 98111