Las Vegas Sun

November 16, 2018

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Andre Agassi, Steffi Graf allege default in sale of Pure nightclub stake

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Bow Wow performs at Pure in Caesars Palace on Sept. 12, 2009.

Tennis legends Andre Agassi and Steffi Graf and coinvestors have filed a second lawsuit over their investment in the Pure nightclub at Caesars Palace on the Las Vegas Strip.

Agassi, Graf and the investors first sued Pure Management Group in September, charging club executives mismanaged finances and used money from Pure to fund competing nightclubs.

That lawsuit was voluntarily dismissed by the plaintiffs in January for undisclosed reasons, with attorneys for Pure never publicly filing a response.

But on Monday, attorneys for Agassi, Graf, Darren Cahill and Boreta Enterprises III LLC filed a new lawsuit in Clark County District Court against an entity called AA Touch LLC.

The new lawsuit says that on Oct. 29 -- after the first suit was filed -- the Pure investors agreed to sell their interests for an undisclosed price in Touch LLC, the licensed owner of Pure. The agreement included releases and a covenant not to sue, the lawsuit says.

The sales agreement involved promissory notes secured by the investors' ownership units in Touch LLC, the suit says.

The lawsuit says the notes were also secured by guarantees signed by an individual, Gary Dragul.

The lawsuit claims the defendant, AA Touch LLC, defaulted on the notes by failing to make an installment payment on the notes due March 9.

"At a specified time in the future, plaintiffs intend to pursue claims against Gary Dragul on the guarantees," says the lawsuit, filed by attorneys with the Las Vegas law firm Bailey Kennedy.

The suit alleges breach of contract and breach of the implied covenant of good faith and fair dealing; and seeks unspecified damages.

Angel Management Group last fall announced it was buying Pure Management Group and taking over such properties as Pure, LAX Nightclub at the Luxor and Social House restaurant at Crystals at CityCenter.

"The lawsuit is a commercial dispute between two third parties with respect to a sale of membership interests in Pure nightclub and has nothing to do with Angel Management Group,"

Neil Moffitt, CEO of Angel Management Group, said in a statement when asked about the new lawsuit.

State records show Dragul is a manager of AMG Management LLC, which lists the same address as Angel Management Group.

AMG Management LLC is associated with Touch LLC, still the licensed owner of Pure, through a series of limited liability companies.

Records show Touch LLC is managed by Touch Management LLC, which is managed by FDR Management LLC, which is managed by AMG Management LLC.

Court records from 2009 showed that at that time,

Touch LLC was less than 50 percent but more than 10 percent owned and managed by Touch Management LLC.

Touch Management LLC, at least at that time, was a subsidiary of yet another company, FDR Delaware LLC, a Delaware limited liability company.

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