According to the complaint, the class action is seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). As alleged herein, defendants published a series of materially false and misleading statements that defendants knew and/or recklessly disregarded were materially false and misleading at the time of such publication, and that omitted to reveal material information necessary to make defendants' statements, in light of such material omissions, not materially false and misleading.
GPIC is a company engaged in the manufacture and supply of casino table game equipment to casinos worldwide. In addition, the company sells its non-casino poker chips to a wholesaler in the United States, and it markets its products directly to end-users and through distributors. Throughout the Class Period, defendants represented to investors that the Company maintained adequate internal controls and procedures, while at the same time, complying with Generally Accepted Accounting Principles ("GAAP")and SEC accounting rules.
The complaint alleges that on March 28, 2007, defendants shocked investors when they announced that the Company was delaying the filing of its full-year 2006 report due to deficiencies in accounting control procedures. GPIC said the deficiencies were discovered while its year-end financial statements were being prepared. In addition, the Company said that it expects to identify certain of these deficiencies as material weaknesses when the report is filed, and that it is working to resolve and remedy them. Before the March 28, 2007 announcement, GPIC shares were trading at $19.50 per share. In response to the announcement, GPIC's share price dropped almost 8% in the single trading day, to close at $18.10 per share. The next day, GPIC shares continued to sharply decline and shares of GPIC were trading as low as $17.02 per share, or a loss of nearly 13%. This substantial share price decline caused material harm to investors, and also caused substantial losses and damages to GPIC shareholders.
On June 29, 2007, the plaintiff in the first filed class action filed a Notice of Voluntary Dismissal. On July 13, 2007, the Court entered the Ordered approving the Notice of Voluntary Dismissal. The case is continuing in similar purported class action filed in the same court.
On December 03, 2007, an order was granted on the Motion to Appoint Lead Plaintiff and Counsel. On November 27, 2007, a Motion for Appointment of Lead Counsel and Lead Plaintiff by the Plaintiff.
On February 12, 2008, an amended consolidated complaint was filed for violations of the Federal Securities Laws.
On Jun. 16, 2008, a notice was filed by the Plaintiff in response and opposition to the motion to dismiss and a requested Judicial Notice In Support Of Lead Plaintiff's Opposition To Defendants' Motion To Dismiss. On April 16, 2008, a Motion to Dismiss was filed by the Defendants.
On January 9, 2009, the lead plaintiff filed an amended complaint Second Consolidated Amended Class Action Complaint for Violations of the Federal Securities Laws against the defendants.
On September 28, 2009, an Order was issued by the Court granting the defendants’ motion, effectively dismissing this action with prejudice.
On October 29, 2009, the Lead Plaintiff submitted a notice of appeal the United States Ninth Circuit Court of Appeals.