Case Page

 

Case Status:    SETTLED
On or around 06/28/2007 (Date of order of final judgment)

Filing Date: June 15, 2004

According to a press release dated August 21, 2007, the Company announced that the United States District Court of Nevada has approved the previously disclosed settlement agreements reached with the plaintiffs in the consolidated federal securities class action lawsuits filed in 2004 against the Company and certain current and former officers, as well as the shareholder derivative litigation filed in 2006, and in connection therewith, the Court dismissed the cases.

In a press release dated February 27, 2007, Bally has reached agreements, subject to court approval, to settle the consolidated federal securities class action lawsuits filed in 2004 against the Company and certain current and former officers, as well as the shareholder derivative litigation filed in 2006. Both actions are currently pending in the United States District Court, District of Nevada. The cost of the settlement to the Company will be $1.25 million. Such costs have been accrued in the Company's financial statements for the quarter ended September 30, 2005. In addition to certain governance actions the Company has agreed to undertake, the Company's directors and officers insurer will also contribute approximately $14.75 million for a total of $16.0 million in cash, plus certain interest, to settle the securities class action and derivative litigation.

On April 7, 2006, the Court entered the Order granting the defendants’ April 4th Stipulation and [Proposed] Order Staying the Case Pending Mediation. According to the Order, the proceedings shall be stayed pending the agreed upon mediation until either party provides written notice to the other party that the mediation will not be successfully completed, or such other date as may be stipulated to by the parties or ordered by this Court. In the event that either party provides written notification that the mediation will not successfully lead to settlement, Lead Plaintiff shall have 10 days from the date of sending or receiving the notice within which to file and serve the proposed Amended Consolidated Complaint.

On March 15, 2005, the Court entered the Order granting the motion to appoint District #9, I.A. of M & W Pension Trust as lead plaintiff and granting the motion to appoint lead counsel. That day, the actions were also consolidated and 04-CV-821 was designated as the Master File. On May 16, 2005, a Consolidated Class Action Complaint was filed, and the defendants responded by filing a motion to dismiss.

The original complaint charges Alliance Gaming and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Alliance Gaming is a diversified, worldwide gaming company that designs, manufactures and distributes gaming machines and computerized monitoring systems for gaming machines. The complaint alleges that during the Class Period, defendants caused Alliance Gaming's shares to trade at artificially inflated levels through the issuance of false and misleading statements regarding the Company's business prospects, which allowed the Company to consummate stock-for-stock acquisitions with inflated stock valued at $16 million; allowed certain defendants to sell $3.6 million worth of their own shares at artificially inflated prices; and permitted Alliance Gaming to grow and benefit economically from the wrongful course of conduct. As a result, the Company's shares traded at inflated prices, topping $34 during the Class Period.

The complaint further alleges that On June 8, 2004, the Company issued a press release updating the Company's guidance for fiscal year 2004 to 'the range of $0.96 to $1.00 per share, compared to the prior guidance of $1.04,' and for fiscal year 2005 to 'a range of $1.20 to $1.30' compared to prior guidance of $1.40. On this news, the Company's shares plunged $5.24 to close at $16.15 per share. According to the complaint, the defendants actively concealed from the public that: (i) the Company was experiencing massive problems/delays associated with the Company's Wide Area Progressive games in Nevada due to regulatory hold-ups; (ii) the Company was experiencing massive delays in its approval and deployment of New York VLT game revisions; (iii) the Company's margins were being slashed by increased costs associated with the Company's central and traditional determination products; (iv) the Company's acquisition of Sierra Design Group was suffering from massive integrative problems; (v) the Company was losing its competitive position and experiencing problems in its game unit (video product); and (vi) as a result of the above, defendants' forecasts for fiscal year 2004 of $1.04 and fiscal year 2005 of $1.40 per share, were grossly inflated.

COMPANY INFORMATION:

Sector: Services
Industry: Casinos & Gaming
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: AGI
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. Nevada
DOCKET #: 04-CV-821
JUDGE: Hon. Kent J. DawsonHon.
DATE FILED: 06/15/2004
CLASS PERIOD START: 01/15/2004
CLASS PERIOD END: 06/07/2004
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Brian Felgoise
    230 South Broad Street, Suite 404 , Brian Felgoise, PA 19102
    215.735.6810 215/735.5185. ·
  2. Brodsky & Smith, LLC (former Pennysylvania)
    11 Bala Avenue, Suite 39, Brodsky & Smith, LLC (former Pennysylvania), PA 19004
    610.668.7987 610.660.0450 · esmith@Brodsky-Smith.com
  3. Geller Rudman, PLLC.
    197 South Federal Highway, Suite 200, Geller Rudman, PLLC., FL 33432
    561.750.3000 888.262.3131 · info@geller-rudman.com
  4. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  5. Lerach Coughlin Stoia Geller Rudman & Robbin (San Francisco)
    100 Pine Street, Suite 2600, Lerach Coughlin Stoia Geller Rudman & Robbin (San Francisco), CA 94111
    415.288.4545 415.288.4534 · info@lerachlaw.com
  6. Wechsler Harwood LLP
    488 Madison Avenue 8th Floor, Wechsler Harwood LLP, NY 10022
    212.935.7400 · info@whhf.com
  7. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
No Document Title Filing Date
COURT: D. Nevada
DOCKET #: 04-CV-821
JUDGE: Hon. Kent J. DawsonHon.
DATE FILED: 05/16/2005
CLASS PERIOD START: 01/15/2004
CLASS PERIOD END: 06/07/2004
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Beckley Singleton, Chtd. (Las Vegas)
    530 Las Vegas Boulevard South, Beckley Singleton, Chtd. (Las Vegas), NV 89101
    702.385.3373 702.385.9447 · info@beckleylaw.com
  2. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
No Document Title Filing Date