Former CEO sues Mountaineer

NEWELL - The former chief executive officer of MTR Gaming Group, Inc., has entered into a lawsuit which claims the company owes him hundreds of thousands of dollars.

A complaint filed Oct. 6 in Hancock County Circuit Court names MTR Gaming Group, Mountaineer Casino, Racetrack and Resort, and Jeffery Jacobs, chairman of the board of directors of the company as defendants.

An amendment to his original contract stated that if Arneault agreed to leave the company two months earlier than planned in 2008, Mountaineer Gaming Group would continue to pay Arneault $150,000 in insurance policy premiums each year until 2012. The original contract was signed in 1999, with the amendment becoming effective in 2008.

The complaint revealed that Mountaineer Gaming Group stated multiple times in its 2008 annual report that it no longer had an obligation to pay Arneault.

The lawsuit accuses Mountaineer Gaming Group of a breach of contract because of its refusal to pay, and accuses Jacobs of misrepresenting the purpose of the amendment to the contract.

Public Relations Director Tamara Pettit stated that the company does not comment on pending litigation. Arneault could not be reached for comment.