A stockholder filed suit today against Resorts International Inc., two of the firm's officers and five directors, charging that "material facts about the operations and financial outlook of Resorts" were concealed from the investing public.
"In particular, the close connection of Resorts employes and casino gaming operations with organized crime figures," was withheld, the suit alleged.
Marilyn S. Berman, of Merrick, N.Y., filed the suit in U.S. District Court here.The stockholder requested that the suits be certified as a class action and said she purchased stock of Resorts in September, when the alleged actions took place.
Resorts is engaged in the ownership and operation of hotel and casino facilities in Nassau and, commencing last spring, in Atlantic City. As of last Dec. 31, the firm had approximately $86 million in assets.
In addition to the corporation and five directors, two defendants named are I. G. Davis, president, and J. M. Crosby, chairman.
The complaint alleges specifically that "since early 1978 Resorts carried out a plan and scheme to deceive the investing public as to the true nature of its operations, and in particular with respect to the nature and prospects of its casino operations conducted in Atlantic City."
Resorts received a temporary license from the New Jersey Casino Control Commission to operate a casino in May. Earlier this week, the state's attorney general said a permanent license should be denied.
On Tuesday, Resorts denounced the attorney general's report and denied dealings with persons who had ties to organized crime, as alleged in the state report.
Resorts had earnings for the six months ending July 2 of $10.2 million ($3.02 a share) compared with $25 million (78 cents) for the entire year of 1977. Resorts stock subsequently rose to record price levels.
The suit today said Resorts allegedly failed to disclose substantial risks concerning its future operations.