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Monday, July 7, 2008
Contact: Bob Brammer, Iowa Attorney General’s Office, 515-281-6699

State settles with two TouchPlay litigants

Statement of the Iowa Attorney General’s Office, July 7, 2008:

The Attorney General’s Office has reached a settlement with Greater America Distributing, Inc., with offices in Johnston, Iowa, and Nebraska Technical Services, Inc., Omaha, Nebraska. Greater America Distributing was a distributor of monitor vending TouchPlay machines, and Nebraska Technical Services was a retail operator in the TouchPlay program.

The settlement was approved by the State Appeal Board, which met Monday afternoon in Des Moines. Go to: Settlement.

Under the settlement, the state will pay a total of $2.9 million to Greater America Distributing and Nebraska Technical Services, and the companies will give up all claims and dismiss their portions of the lawsuit. As part of the settlement, Greater America Distributing also agreed to forgive debts owed them by certain operators relating to leases of TouchPlay machines, including operators who are part of ongoing litigation as well as debts owed by TouchPlay operators not involved in litigation. Greater America Distributing and Nebraska Technical Services, as part of the settlement agreement, acknowledge the state’s denial of liability and that the settlement does not constitute any admission of liability or wrongdoing.

Assistant Attorney General Jeffrey Peterzalek explained some of the reasons for the settlement in a letter to the Appeal Board, which consists of the State Auditor, State Treasurer, and the head of the Department of Management: “In light of the complexity of the case, the potential exposure to the State, as well as other pending litigation involving TouchPlay, it was decided to attempt to settle the matter. The parties participated in extensive negotiations, including mediation, and were able to come to a settlement of all claims made by Greater America Distributing and Nebraska Technical Services and any affiliated companies. . . .”

Greater America Distributing and Nebraska Technical Services were plaintiffs in the Siggins et al lawsuit, joining the suit December 21, 2006. Numerous plaintiffs remain in that suit, and trial remains set for Sept. 8, 2008.

[Go to TouchPlay litigation chronology and summary up to and including the GAD and NTS settlement..]