LOS ANGELES, CA -- (MARKET WIRE) -- 08/09/06 -- Los Angeles-based television production company Bluemoon Entertainment has withdrawn its lawsuit against online gaming operator Bodog.com due to the defendant's offshore status and lack of U.S. assets, both of which make it very unlikely that Bluemoon could collect any potential judgment in the U.S.

Filed last April in Los Angeles Superior Court, the case withdrawn today involved several causes of action against Costa Rica-based Bodog, Bodog Entertainment Group and CEO Calvin Ayre. It also named Costa Rican entity Riptown Media, a marketing company based in Vancouver, Canada, that apparently serves only one client -- Bodog and its related companies. The complaint set forth causes of action for breach of contract, breach of confidence, and misappropriation of ideas in relation to a reality television series created by Bluemoon Entertainment.

"This case was not dismissed on the merits," said plaintiff attorney David Beitchman of Beitchman & Zekian. "It is unfortunate that Bodog's 'judgment proof' offshore status will preclude our client from pursuing what we believe is a very strong case." Mr. Beitchman added that offshore companies that do business in the U.S. but have no domestic assets can, if so desired, shield themselves from U.S. civil court judgments.

Statements made by Bodog lawyer James Nguyen of Foley & Lardner in a news release dated August 9th refer to the case as "frivolous" and "baseless." But a detailed breakdown of the similarities between the Bodog and Bluemoon programs proves otherwise (a breakdown is included in the lawsuit -- case #BC 350152). The fact is that during a series of in-person meetings that occurred May-August 2005 with senior Bodog representatives, Bluemoon provided Bodog with complete project disclosure, and submitted numerous proposal and development materials, including project overviews and synopsis, episodic outlines, distribution and marketing breakdowns, and production schedules with full budget analysis. Prior to providing these details, Bodog representative Susan Mainzer entered into a non-disclosure agreement on behalf of Bodog. It has been reported that prior to Bluemoon's development of the original poker-themed reality series, Bodog's only other foray into reality television involved a proposed but never produced series in which women would compete to bear Mr. Ayer's child in exchange for a $10 million prize.

"Bluemoon elected to dismiss this case because Bodog and Mr. Ayre have shielded themselves from U.S. civil as well as criminal law," said Bluemoon spokesperson Grace Williams. "Bodog's lawyers can spin the dismissal any way they choose in the press, but their PR efforts won't change the fact that Bodog deliberately maintains all of its assets outside the reach of U.S. civil court judgments. Even serving routine court papers, let alone trying to collect a judgment, was a challenge"

It has been reported on several online poker news sites that Mr. Ayre, whose earlier legal problems involving insider stock trading in Canada are well documented, is reportedly avoiding entry into the U.S. due to concern over the Justice Department's crackdown on online gambling.

Evidence of Bodog's approach to the Bluemoon lawsuit began to surface shortly after the lawsuit was filed. In a formal response to the Los Angeles Superior Court on April 11, Bodog stated "We are planning to meet with the plaintiffs and their counsel to attempt to resolve this matter without recourse to further litigation." But as Interactive Gaming News reported on May 3rd, Bodog's lawyers, led by James Nguyen of Foley & Lardner's Los Angeles office, informed Bluemoon and its attorneys during a meeting that Mr. Ayre would make sure that Bodog had no assets in the United States for the plaintiffs to collect. The story went on to report that Bodog's lawyers warned the plaintiffs that if the lawsuit was not withdrawn within 24 hours, Bodog would file a countersuit to discourage future litigation (no such countersuit was filed).

"While Mr. Ayre's 'catch me if you can' statements regarding efforts to criminalize online gaming have been widely publicized, people in the entertainment industry are probably not aware that he has also positioned himself, Bodog and all of the company's assets beyond U.S. civil judgments," added Williams. "This case should serve as a wake-up call to U.S. companies considering doing business with such firms."