Weeks after having their motion for class certification denied and a proposed global settlement rejected, the plaintiffs in three actions against entities and individuals involved in the Full Tilt Poker Internet gambling operation have dismissed their claims without prejudice. This case illustrates the importance of due process considerations in representative actions.
Full Tilt, PokerStars, and Absolute Poker/Ultimate Bet (collectively, the “Poker Companies”) were the largest online gambling sites operating in the United States following Congress’s enactment of the Unlawful Internet Gambling Enforcement Act of 2006, which made it a crime for gambling businesses to “knowingly accept” most forms of payment “in connection with the participation of another person in unlawful Internet gambling.” 31 U.S.C. § 5363. On April 15, 2011, the U.S. Attorney’s Office for the Southern District of New York shut down the Poker Companies’ websites, seized their assets, and issued arrest warrants for their founders. The DOJ brought civil and criminal actions against the Poker Companies and others involved in the operation, which were settled in July 2012. Continue Reading