Case Page

 

Case Status:    SETTLED
On or around 06/10/2010 (Date of order of final judgment)

Filing Date: June 01, 2007

The original Complaint alleges that during the class period, Defendants, Shuffle Master Inc. and certain officers, inflated reported profits, by among other things, booking an inter-company transfer of inventory that took place on the last day of the fiscal year ended October 31, 2006, as if it were a sale to a third party.

The complaint alleges that in particular, defendants: (1) through the October 31, 2006 transaction, along with several other transactions for which the company improperly accounted, inflated Shuffle Master's quarterly earnings per share by 50% and year-end earnings per share by 35%; and (2) the fraudulent booking of inter-company transactions arose out of Shuffle Master's tax avoidance scheme, whereby the Company transferred profits that were otherwise taxable in the U.S., to foreign countries where profits would be taxed at a much lower rate, if at all. On March 12, 2007, Shuffle Master admitted that it had improperly booked the October 31, 2006 transaction, and that it would have to restate reported results for the fourth quarter and fiscal year end 2006. The company further admitted that its internal controls were defective. In response, Shuffle Master's stock fell 8%.

On August 2, 2007, Judge Kent J. Dawson granted the joint stipulation to consolidate several class actions. On November 30, 2007, Shuffle Master Institutional Investor Group was appointed lead plaintiff and Grant & Eisenhofer P.A. was approved as lead counsel. On February 5, 2008, the lead plaintiff filed a Consolidated Class Action Complaint. The defendants responded by filing a motion to dismiss the Consolidated Class Action Complaint.

On March 23, 2009, Judge Kent J. Dawson denied the defendants’ motion to dismiss. On February 2, 2010, a Settlement Agreement was filed. On February 4, 2010, the judge preliminarily approved the settlement and the Final Fairness Hearing was set for May 5, 2010. The settlement is in the amount of $13,000,000. On June 9, 2010, the settlement was approved. The plan of allocation and the motion for attorneys' fees and expenses was also approved. The action is now dismissed with prejudice.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: SHFL
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: D. Nevada
DOCKET #: 07-CV-00715
JUDGE: Hon. Kent J. Dawson
DATE FILED: 06/01/2007
CLASS PERIOD START: 12/22/2006
CLASS PERIOD END: 03/12/2007
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Albright, Stoddard, Warnick & Albright
    801 South Rancho Drive, Quail Park Suite D-4, Albright, Stoddard, Warnick & Albright, NV 89106
    702.384.7111 ·
  2. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  3. Pomerantz Haudek Block Grossman & Gross LLP (former Chicago)
    1 North LaSalle Street, Suite 2225, Pomerantz Haudek Block Grossman & Gross LLP (former Chicago), IL 60602
    312.377.1181 312.377.1184 · info@pomerantzlaw.com/
  4. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
No Document Title Filing Date
COURT: D. Nevada
DOCKET #: 07-CV-00715
JUDGE: Hon. Kent J. Dawson
DATE FILED: 02/05/2008
CLASS PERIOD START: 02/01/2006
CLASS PERIOD END: 03/12/2007
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Grant & Eisenhofer (New York)
    485 Lexington Avenue, 29th Floor, Grant & Eisenhofer (New York), NY
    646.722.8500 646.722.8500 · lawyers@gelaw.com
No Document Title Filing Date
No Document Title Filing Date