By Cindy Barks | The Daily Courier
Throughout much of its existence, the Prescott Valley Convention and Event Center has been embroiled in a mammoth lawsuit that questions the basic premises of the financing for the center.
The suit, which has drawn in dozens of plaintiffs, defendants, counter defendants, third-party defendants, and cross-claimants, has generated nearly 800 filings in U.S. District Court to date.
At issue: Whether the developers of the Prescott Valley Events Center engaged in securities fraud by artificially inflating the center’s revenue potential.
At stake: $27.4 million.
Allstate’s complaint
The lawsuit’s primary defendant, Allstate Life Insurance Company, maintained in its 2009 original claim that the Town of Prescott Valley, Global Entertainment, the Fain Signature Group and a number of other involved parties withheld important information about the $35 million bond sale that financed the construction of the Events Center.
