Recently, the bankruptcy estate of collapsed futures broker Refco Inc. has filed a lawsuit against financial services firm CantorFitzgerald, L.P. The suit alleges that Cantor's Nevada gaming businesses acquired technology and other assets from a subsidiary in which Refco held a 10 percent stake, without compensating the subsidiary.
Conveniently, this lawsuit comes ahead of Cantor's pursuit of a potential public offering of its subsidiary in the mobile gaming space, Cantor Entertainment Technology, Inc. Financial litigation law firm Grant & Eisenhofer filed the suit on behalf of Refco bankruptcy estate representative Marc Kirschner to recover tens of millions of dollars owed to the estate. The suit contends that in 2002, Refco invested $8 million in a Cantor Fitzgerald subsidiary, Cantor Index Holdings (CIH), in exchange for a 10 percent partnership interest. Later, CIH actually developed gaming technology, such as devices for remote gambling and other betting techniques.