Gaughan files suit over flier

Kim Smith

Wednesday, April 26, 2000 | 10:28 a.m.

The controversy over the anonymous flier criticizing Clark County Commissioner Lance Malone grew more heated Tuesday when Coast Resorts Chairman Michael Gaughan filed a lawsuit against those reportedly responsible for the flier.

Gaughan is suing Mark Brown, a vice president of Station Casinos Inc.; Tom Skancke, a political consultant for Station Casinos; Station Casinos and the Fiesta Hotel Corp. alleging conspiracy and defamation.

The suit filed for Gaughan by Las Vegas attorney Donald Campbell alleges that the defendants defamed Gaughan and Coast Resorts by including them in the flier that was critical of a Malone vote in favor of a casino in Spring Valley proposed by Triple Five Nevada Development Corp.

The suit says the defendants listed Gaughan and Coast Resorts, which operates the Barbary Coast, Gold Coast and the Orleans, among operators who contributed $100,000 to Malone.

Coast Resorts also owns the Suncoast hotel-casino, which is under construction in Summerlin.

The flier, mailed to 39,000 people in Malone's commission district, has been linked to Station Casinos, the Fiesta hotel-casino and Skancke. Station and Fiesta are competitors of Boyd Gaming Corp., which wants to buy and operate the proposed Triple Five casino in Spring Valley.

After the flier was distributed, the lawsuit alleges, the defendants denied any responsibility for it, going so far as to lie to gaming industry people and the media.

"Brown went so far as to falsely claim that plaintiffs Gaughan and Coast Resorts were actually responsible for the misleading mailer," the lawsuit states.

Scott Nielson, executive vice president and general counsel for Station Casinos, said he doesn't believe it's a coincidence that Malone and Gaughan have the same attorney.

"I think this is more political posturing than a serious lawsuit," Nielson said. "I think Mr. Malone wants to take the focus off the real issue, which is his inability to keep his word, and focus on the mailer and his contention that he's the victim."

Nielson said he denies the allegations in the suit and plans to "vigorously defend" Station Casinos.

A Fiesta spokeswoman declined to comment on the lawsuit Tuesday, saying casino officials had not yet seen it. Skancke was and unavailable for comment.