Pinnacle to get $48M from Allianz

May 14, 2008

Pinnacle Entertainment Inc. said it will receive an additional $48 million from Allianz Global Risks US Insurance Co. to settle a lawsuit related to Hurricane Katrina damage at a former Mississippi casino and its Boomtown New Orleans facility.

The Las Vegas-based casino operator said in a filing with the Securities and Exchange Commission that Allianz will make the payment around June 8 in exchange for the release of all claims and an agreement that Pinnacle will dismiss its lawsuit with prejudice.

Pinnacle previously received $5 million from Allianz. The $53 million total payment includes a $3 million interest payment.

Pinnacle said it is still pursuing a claim against RSUI Indemnity Co. To date, the company has received a total of about $191.8 million in payments or payment commitments from its insurers related to the hurricane claims.