Casino operator Park Place Entertainment Corp on Monday said it reached agreement to settle litigation related to the proposed acquisition of the Las Vegas Hilton casino resort by Los Angeles developer Edward Roski Jr. three years ago.
As a result, the company said it will take an additional one-time charge of $3.8 million for the fourth quarter of 2002, as required by financial accounting standards. Park Place said the terms of the settlement are confidential.
The company agreed in June 2000 to sell the Las Vegas Hilton to Roski for $365 million in a deal that later collapsed. Roski sued to recover part or all of $20 million in various deposits and fees he lost when the sale failed to close.
At the center of the legal battle over the failed deal was the role played by Hilton Hotels Corp., which spun off its gaming assets in 1998 to form Park Place. In his lawsuit, Roski depicted Hilton as having tried to buy back its one-time premier property and, after failing at that, working behind the scenes to scuttle the sale.
Because of the charge, Park Place said it was revising its financial results for the fourth quarter and full year of 2002. Including the charge, the company reported a fourth quarter net loss of $21 million, or 7 cents a share, compared with its previous report of a net loss of $18 million, or 6 cents a share. Quarterly adjusted earnings, which exclude non-recurring items, remain at $16 million, or 5 cents a share.