Lawsuit against Hard Rock claims collusion, bid rigging

FORT LAUDERDALE, Fla. (AP) — A rejected suitor for the Hard Rock chain of cafes and casinos claims in a lawsuit that the Seminole Tribe of Florida was the successful buyer because of improper collusion and bid-rigging.

The Baltimore-based development firm The Cordish Co. and an affiliate, Power Plant Entertainment LLC, contend that Hard Rock Cafe International Inc. management secretly negotiated with the Seminoles for seven months before plans to sell were announced in July.

Power Plant, a partnership between Cordish and Coastal Development LLC, was the original developer of the Seminole Hard Rock casinos and hotels in Hollywood and Tampa.

The Seminoles announced the $965 million purchase of the Hard Rock empire from London-based Rank Group PLC on Dec. 7.

The Cordish lawsuit, however, said the company and its banker, Goldman Sachs & Co., were refused the right to bid for the business even though they could have made a larger offer. The lawsuit was filed late Friday in Broward County Circuit Court.

"We were declined the opportunity to bid, which is kind of amazing. We believe we would have prevailed," said Marty Steinberg, the Miami-based attorney for Cordish.

The Seminoles agreed to keep Hard Rock managers in place and provide them with "additional financial benefits" if the tribe was the successful bidder, according to the lawsuit.

"Their actions were motivated by self-dealing and a desire to enrich themselves," the lawsuit says.

A spokesman for Hard Rock Cafe International declined comment Tuesday.

In a statement, the Seminoles accused Cordish of being "a sore loser" and insisted the deal went through "a lengthy and open bidding process."