Michael Racusin, a financial consultant who assisted with the IPO, filed a lawsuit claiming he was not paid his full fee. After a court awarded him $1.3 million in July 2003, American Wagering was forced to file for Chapter 11 bankruptcy protection. Youbet.com attempted to buy the company out of bankruptcy for $9.5 million, but eventually withdrew its offer. The company emerged from bankruptcy in March 2005, with most debts having been paid in full, and shareholders retaining their equity in the company.