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Former CEO Files Lawsuit Against Casino Company

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From Bloomberg News

Pinnacle Entertainment Inc. was sued for wrongful termination by its former chief executive, who said the casino company blamed him for a 2001 “weekend of debauchery” that led to regulatory sanctions and harassment suits.

Paul Alanis, whose resignation was announced in April by Glendale-based Pinnacle, claims that the June 2001 event at the Belterra Casino in Indiana was organized by the former chairman of Pinnacle’s board, R.D. Hubbard. Pinnacle said in a statement that it has “substantial defenses” to his allegations.

Pinnacle said in August that it would pay a $2.26-million fine to the Indiana Gaming Commission and close the Belterra Casino for three days in connection with harassment lawsuits filed against the company by two former employees.

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Alanis “was unjustifiably made to appear responsible” by Pinnacle “for a weekend of debauchery” at a golf tournament that included prostitutes, according to the suit filed Wednesday in Los Angeles County Superior Court.

The company’s shares, which have risen 9% so far this year, rose 25 cents to $6.58 Thursday on the New York Stock Exchange.

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