Case Page

 

Case Status:    DISMISSED    
On or around 11/13/2000 (Date of order of final judgment)

Filing Date: May 29, 1998

According Order signed by U.S. District Judge Sven Erik Holmes, the defendants’ motion to dismiss for failure to state a claim was granted. The case was dismissed.

As previously disclosed by the Company’s FORM 10Q for the quarterly period ended: June 30, 1999, on May 29, 1998, a shareholder class action was filed against the Company in the Federal District Court for the Southern District of
California. Also named as defendants were Gordon T. Graves and Larry D.
Montgomery. The action, which seeks an unspecified amount of damages on behalf
of all similarly situated shareholders, alleges that the Company violated
federal securities laws by making allegedly false and misleading statements
regarding the legality of MegaMania. On July 24, 1998, a similar class action
was filed in the Federal Court for the Northern District of Oklahoma. In January
1999, the two cases were consolidated in the Northern District of Oklahoma. On
March 22, 1999, the class action plaintiffs filed an amended complaint that also
named Clifton E. Lind, the Company's President and Chief Operating Officer, as
an additional defendant and included allegations that the Company violated
federal securities laws by making allegedly false and misleading statements
regarding transactions between the Company and Equipment Purchasing LLC and
Equipment Purchasing II LLC. On April 19, 1999, the Company filed its Motion to
Dismiss all of the claims of the plaintiffs.

The complaint charges MGAM and certain of its officers with violations of the federal securities laws. Specifically, the complaint alleges that during the Class Period, the defendants artificially inflated the price of MGAM's common stock by failing to disclose that the U.S. Attorney's Offices in Oklahoma had concluded that MGAM's primary source of revenue, its MegaMania game, was an illegal gaming device.
Defendants were aware of the U.S. Attorney's investigation of the game, as
well as the conclusion it reached in July, 1997, that the game was in fact illegal, but withheld disclosure of the conclusions reached by the U.S. Attorney until after federal agents raided MGAM's headquarters and filed a complaint for forfeiture of MGAM's electronic player stations. By withholding this material information, the MGAM's stock traded at inflated levels during the Class Period.

COMPANY INFORMATION:

Sector: Services
Industry: Recreational Activities
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: MGAM
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: N.D. Oklahoma
DOCKET #: 98-CV-1014
JUDGE: Hon. James F. Stiven
DATE FILED: 05/29/1998
CLASS PERIOD START: 08/04/1997
CLASS PERIOD END: 01/02/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Jeffrey & Dreher (former)
    225 Broadway, 19th Fl., Jeffrey & Dreher (former), CA 92101
    619.230.8828 ·
  2. Krause Kalfayan Benink & Slavens, LLP (San Diego)
    1010 Second Avenue, Suite 1750, Krause Kalfayan Benink & Slavens, LLP (San Diego), CA 92101
    619.232.0331 619.232.4019 ·
No Document Title Filing Date
COURT: N.D. Oklahoma
DOCKET #:
JUDGE: Hon. James F. Stiven
DATE FILED: 03/19/1999
CLASS PERIOD START: 10/01/1997
CLASS PERIOD END: 02/16/1999
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  2. Finkelstein, Thompson & Loughran
    1050 30th Street, NW, Finkelstein, Thompson & Loughran, DC 20007
    202.337.8000 202.337.8090 · contact@ftllaw.com
  3. Goldman Scarlato & Karon P.C.
    101 W. Elm Street, Suite 360, Goldman Scarlato & Karon P.C., PA 19428
    484.342.0700 484.342.0700 · info@gsk-law.com
  4. Jeffrey & Dreher (former)
    225 Broadway, 19th Fl., Jeffrey & Dreher (former), CA 92101
    619.230.8828 ·
  5. Krause Kalfayan Benink & Slavens, LLP (San Diego)
    1010 Second Avenue, Suite 1750, Krause Kalfayan Benink & Slavens, LLP (San Diego), CA 92101
    619.232.0331 619.232.4019 ·
  6. Law Offices of Bruce G. Murphy
    265 Llwyds Lane, Law Offices of Bruce G. Murphy, FL 32963
    561.231.4202 ·
  7. Titus, Hillis & Reynolds

    ·
No Document Title Filing Date
No Document Title Filing Date