According to the firm's 10-K filing dated 3/31/2000, on April 6, 1999 The District Court granted the Company's motion for
Summary Judgment dismissing the Goldkrantz Case in its entirety. Goldkrantz
subsequently filed an appeal with The United States Court of Appeals for the
Second Circuit (the "Circuit Court") which appeal was denied by the Circuit
Court on December 13, 1999. Goldkrantz has not filed a Request for
Reconsideration with the Circuit Court nor a Petition for Certiorari with the
United States Supreme Court, and, therefore, the litigation is concluded.
The original complaint alleges that Griffin Gaming and certain of its directors, including Merv Griffin, and Sun International Investments Ltd. and other entities which together own a controlling interest in Sun International Hotels Ltd. violated the federal securities laws because the prospectus used to solicit the shareholders of Griffin Gaming to approve the merger of Griffin into Sun International Hotels was misleading. The complaint alleges that the prospectus claimed that $10,973,000 was being paid to a company controlled by Griffin for the use of Griffin's name, likeness and expertise, but that in reality the payment was a bribe.