More rumors and bad news seems to be coming the way of Full Tilt Poker and PokerStars. The recent buzz around gossip mill is that the much spoken of deal between PokerStars and Full Tilt Poker, brokered by the Department of Justice, has hit a roadblock. If the recent rumors are to be believed, PokerStars has pulled out of negotiations with the US Department of Justice, following the DOJ failure to drop criminal allegations against PokerStars.

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The company has decided to fight the charges held against them by the Department of Justice since Black Friday. The alleged fall out occurred, when PokerStars owner, Isai Scheinberg took it as a final blow when the Justice Department did not drop the civil charges against him. Scheinberg is on the FBI most wanted list, following the criminal allegations charged against him post Black Friday.

The first of the news alleging the breakdown of Full Tilt Poker’s new future was out on James Barnes Twitter account. Barnes, a London based former legal counsel for Party Gaming tweeted about the Full Tilt Poker’s uncertain future following PokerStars decision to drop out of negotiations. He tweeted, “Poker stars folds on FTP deal. Never real deal, just bluff to prevent Tapie from bringing FTP back to market – great bargaining chip with DOJ.”

He also tweeted, “DOJ have rejected proposal by Isai to have civil charges dropped. He’s worried about jail time. Poker stars have gone all-in! Will DoJ fold?@_tizzleI’m afraid I can’t divulge source or go into detail, but I stand behind it. And TBH not entirely surprising! #FTP #PokerStars.”

As Barnes’ tweets go viral, many online news sites use his information to reveal to the public, PokerStars’ fall out with DOJ. However, his tweets also gained several counter tweets alleging his information was wrong. One among them was Andrew Feldman, an ESPN Poker Edge host. He tweeted, “The Head of Corp Communications for @PokerStars @erichollreiser say the Twitter rumors of PS folding on the FTP deal is “false”.”

The editor-in-chief of PokerNews Elaine Chairvarlis spoke of the rumors as well. Chairvarlis said, although they were many stories out on there on PokerStars’ fall out, many have also falsified the claim. PokerNews’ Matthew Parvis was one among those who joined in to falsify Banes’ original claim. However, Chairvalis added that since the truth could go both ways, the lack of an official announcement from Eric Hollreiser to put the rumors to rest, has kept the speculations running. His silence has brought about the public to believe largely that, PokerStars has in fact walked out of the deal.

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