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IMPROVED SETTLEMENT ANNOUNCES IN LOTTERY CASE

 IMPROVED SETTLEMENT ANNOUNCES IN LOTTERY CASE
 OWATONNA, Minn., Dec. 12 /PRNewswire/ -- A supplemental settlement


agreement has been filed in the State Lottery Class Action lawsuit, which will give holders of "three-cherry" Jackpot Lottery tickets another ticket in a new game, it was announced today.
 The lawsuit, which was started in Steele County last June, alleged that the State Lottery misled the public in its Jackpot game. The game featured instant prizes, as well as a drawing for a grand prize of $1,000.00 a week for life. Ticket buyers were to mail in tickets with three cherry symbols to be eligible for the grand prize. However, tickets were sold after the May 6 deadline for the grand prize drawing. Three-cherry tickets received after May 6 therefore were not eligible for the grand prize drawing.
 The lawsuit, which was started by Robert M. Smith of Burnsville, Minn., contended that the tickets and the literature issued by the State Lottery failed to disclose that three-cherry tickets received after May 6 were ineligible for the grand prize drawing, and also misled players about the odds of winning.
 A proposed settlement was reached in August and submitted to the Steele County District Court for a fairness hearing on Oct. 9. That called for 895,000 tickets in the Joker's wild II game, which otherwise would be losing tickets, to be converted to winning tickets. The effect of this would be to add $560,000.00 in prizes to the game.
 According to class counsel, Richard E. Tollefson of Owatonna, that settlement agreement has now been improved in the form of individual relief to holders of three-cherry tickets. According to Tollefson, further settlement negotiations took place on Nov. 20 under the guidance of Judge Lawrence T. Gallagher. In those discussions George R. Anderson, the director of the State Lottery, agreed that in addition to the general class-based relief, the Lottery would also give a ticket in a subsequent game to all holders of three-cherry tickets as well as to all those individuals who mailed in three-cherry tickets after the entry deadline in the grand prize drawing.
 According to Tollefson, the Lottery is holding 35,500 three-cherry tickets which were received after the cut-off date for entry into the grand prize drawing. Persons who sent those tickets in will automatically receive a new ticket in a new game not later than June 30, 1992. Those instructions will be distributed by the State Lottery to retailers within the next few weeks if the settlement is approved.
 The settlement agreement also requires the Lottery to adopt certain procedures in order to prevent similar confusion occurring in the future. The settlement agreement has been submitted to the court for approval and a ruling is expected shortly.
 -0- 12/12/91
 /CONTACT: Robert Smith of Smith Patterson, 612-340-1777/ CO: ST: Minneapolis IN: SU:


JT -- MN005 -- 2192 12/12/91 18:42 EST
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Date:Dec 12, 1991
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