$8 Million Class Action Suit Entered Against Harrah’s

Beginning Monday (September 20, 2010), approximately 350,000 people will receive a court-ordered notice advising them that they are class members in a class action lawsuit against Harrah's Entertainment, Inc. for violations of New Jersey advertising laws with 80,000 of them being advised that they have been awarded $100 each. The remaining class members will be advised that they may be entitled to relief if they suffered damages from Harrah's violations.

The lawsuit, Debra Smerling, et al. v. Harrah’s Entertainment, Inc., filed in New Jersey Superior Court in New Brunswick, involves a promotion called "Birthday Cash" in which Harrah's mailed it Total Rewards card customers coupons for $15 cash redeemable at its Atlantic city casino. The Court ruled that that Harrah's violated the New Jersey Consumer Fraud Act and related advertising regulations by listing specified dates on which the coupon was redeemable at the casino, without disclosing Harrah's policy to not honor coupons presented after midnight and before 6:00 a.m. on the date specified for redemption. The court ruled that Harrah's violations entitled the 80,000 "Birthday Cash" class members who redeemed their coupons $100 each in statutory penalties under the New Jersey Truth in Consumer Contract Warranty and Notice Act, which prohibits businesses from giving notices to consumers that violate other laws. The court also ruled that the "Birthday Cash" class members who did not redeem their coupons must be provided with notice that if they attempted to redeem their coupons and Harrah’s refused that they can file a separate lawsuit against Harrah’s for any damages they sustained.

Debra Smerling, the lead plaintiff in the lawsuit, was a Harrah's customer who attempted to redeem her $15 Birthday Cash award on August 10, 2003, which was the date listed on her coupon, at around 12:30 a.m. Harrah's staff refused to honor the coupon, claiming that it was still August 9th under the casino's (undisclosed) policy and that it would not be August 10th until the casino closed later that morning and reopened at 8 a.m. Ms. Smerling did not intend to stay at the casino until 8 a.m. and so left without the promised $15 Birthday Cash award.

Ms. Smerling and the class are represented by the Law Firm of Galex Wolf, LLC in North Brunswick, New Jersey. (www.galexwolf.com).