Judge Won't Dismiss Tax Lawsuit Against IGT

CARSON CITY, Nevada – As reported by the Associated Press: "A Reno judge refused Thursday to dismiss a whistleblower's claim that slot machine giant International Game Technology filed false tax returns and owes up to $30 million in back state taxes.

"Washoe County District Judge Peter Breen said the dismissal, sought by IGT and state Attorney General Brian Sandoval, would undermine the state's 1999 whistleblower law, which gives people with inside knowledge about such cases a percentage of any amount eventually collected by the state.

"'First, the very purpose of the False Claims Act is to provide an incentive for persons to come forward and expose frauds upon the government,' Breen wrote in his 6-page order favoring former IGT employee Jim McAndrews.

"…Breen also said the merits of McAndrews' claim are unclear at this point because a state Taxation Department audit of Reno-based IGT has not yet been completed.

"…McAndrews alleges that IGT and Anchor Coin Inc. were involved in a joint venture and since 1997 filed false sales and use tax returns with the state on sales and leases of slot machines and slot components. Anchor Coin later was acquired and merged into IGT."