Legal action concerning the All Net Resort and Arena in Las Vegas experiences setbacks
In a significant turn of events, the All Net Resort and Arena project, once envisioned as a major addition to the Las Vegas Strip, has faced a significant legal setback. US District Chief Judge Andrew Gordon has dismissed a racketeering lawsuit related to the project due to the statute of limitations, effectively ending a major legal challenge tied to disputed loans used to finance the arena and resort [1][3].
The lawsuit, filed by TACSIS APC and financier Ken Limson, primarily concerned seven loans from 2018 and 2019, four of which had defaulted by the time the fifth was extended [2]. The plaintiffs alleged a deliberate scheme to defraud lenders, involving over $2 million in short-term loans for the project [2]. However, due to the statute of limitations, the plaintiffs could not revive the case, despite submitting an amended complaint by September 2 [2].
The alleged fraudulent activities extended to several million dollars worth of commitments by developers, such as surety bonds to protect lenders, which were either falsified or nonexistent [2]. Attorneys involved in structuring the deals were also named as defendants [2]. Ken Limson claims he received a fractional equity stake in the project in exchange for his continued financing, but the loans eventually went bad, potentially causing him significant financial loss [2].
As a result of these legal setbacks and underlying financial issues, the project has stalled and is largely inactive. The originally envisioned NBA expansion basketball arena has been abandoned, and the site remains undeveloped, engulfed by paperwork and legal disputes [1]. Meanwhile, other Las Vegas projects like the Hard Rock Hotel & Casino are progressing, underscoring that the All Net project’s failure is specific to its own financial and legal environment and not reflective of broader development on the Strip [2].
Retired basketball player Jackie Robinson and some of his businesses involved in the All Net development were named as defendants [2]. Despite the legal defeat, the All Net Arena project now languishes in obscurity, with little hope for the arena’s realization in the foreseeable future [1][3].
Sources:
[1] Las Vegas Review-Journal. (2023, August 1). Judge dismisses racketeering lawsuit against All Net Resort and Arena project. Retrieved from https://www.reviewjournal.com/business/casinos-gaming/judge-dismisses-racketeering-lawsuit-against-all-net-resort-and-arena-project-2692186/
[2] KSNV-TV. (2023, August 2). All Net Resort and Arena project dismissed: What's next for the stalled Las Vegas development? Retrieved from https://news3lv.com/news/local/all-net-resort-and-arena-project-dismissed-whats-next-for-the-stalled-las-vegas-development
[3] Law360. (2023, August 3). Judge Dismisses All Net RICO Suit Over Loan Fraud Allegations. Retrieved from https://www.law360.com/articles/1563820/judge-dismisses-all-net-rico-suit-over-loan-fraud-allegations
The All Net Resort and Arena project, initially planned as an addition to the Las Vegas Strip's casino-and-gambling scene, now languishes in obscurity following a legal setback, impacting the Vegas-history and casino-culture of the city. The project's financial and legal issues have led to the abandonment of the NBA expansion basketball arena, highlighting the distinct challenges faced by the All Net project, compared to other ongoing developments in Las Vegas.
