Case Page

 

Case Status:    SETTLED
On or around 09/22/2004 (Date of order of final judgment)

Filing Date: August 25, 2000

According to the Company’s Form 10-Q for the quarterly period ended August 28, 2004, the Company entered into an agreement with plaintiffs to settle the class action lawsuit on terms that require payment by the Company of amounts that, after taking into account certain insurance proceeds that the Company expects to receive, are not material to the Company's financial condition or results of operation. In September 2004, following a fairness hearing, the court approved the terms of the agreement with the class action plaintiffs, as was required to finalize the terms of settlement, and entered judgment in this matter incorporating the agreed terms. These developments effectively close this case.

By the Notice of Proposed Settlement of Class Action, the settlement fund was in the amount of $10,250,000 in cash, plus interest.

Earlier, according to the same SEC filing, the Company together with the Company’s former Chairman and Chief Executive Officer, the Company’s former President and Chief Operating Officer, and the Company’s former Chairman and current President and Chief Executive Officer, were named as defendants in a shareholder class action suit captioned Sandra Kafenbaum and Steven Schulman, individually and on behalf of all other similarly situated v. GTECH Holdings Corporation, et. al., which suit was filed in the U.S. District Court of Rhode Island in August 2000 and subsequently amended in February 2001. In September 2002, the court granted the Company’s motion to dismiss plaintiff's claim against the former Chairman and current President and Chief Executive Officer, holding that there were no actionable statements attributable to him.

The original complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing an series of material misrepresentations and omissions to the market between April 25, 2000 and July 25, 2000. For example, as alleged in the complaint, the defendants failed to disclose (i) that GTECH was suffering from an inability to close significant contracts, including contracts in Columbia, Italy, Portugal and Asia; (ii) that GTECH's inability to close contracts would negatively impact revenues by as much as $48 million dollars; (iii) that the Company's projections of success were lacking in a reasonable basis at all times because of defendants' inability to close the contracts GTECH highlighted during the Class Period; and (iv) that costs at GTECH were climbing at an alarming rate which in turn had significantly reduced earnings.

COMPANY INFORMATION:

Sector: Technology
Industry: Computer Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: GTK
Company Market: New York SE
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: D. Rhode Island
DOCKET #: 00-CV-00413
JUDGE: Hon. Ronald R. Lagueux
DATE FILED: 08/25/2000
CLASS PERIOD START: 04/11/2000
CLASS PERIOD END: 07/25/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Leo W. Desmond
    2161 Palm Beach Lakes Boulevard, Suite 204, Leo W. Desmond, FL 33409
    561.712.8000 561.712.8000 · stocklaw@bellsouth.net
  2. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
  3. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
No Document Title Filing Date
COURT: D. Rhode Island
DOCKET #: 00-CV-00413
JUDGE: Hon. Ronald R. Lagueux
DATE FILED: 02/13/2001
CLASS PERIOD START: 07/13/1998
CLASS PERIOD END: 08/29/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
  2. Moulton & Gans LLP
    133 Federal Street, Moulton & Gans LLP, MA 2110
    617.369.7979 ·
  3. Weiss & Yourman (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Yourman (New York, NY), NY 10126
    212.682.3025 212.682.3010 · info@wyca.com
No Document Title Filing Date