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MGM Mirage

Case Summary

MGM Mirage Securities Litigation

Case Summary

Case Status:    SETTLED
On or around 10/16/2017 (Other)

Filing Date: August 19, 2009

According to a press release dated August 19, 2009, the complaint charges MGM and certain of its officers and directors with violating Section 10(b) of the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, defendants made materially false and misleading statements concerning MGM's financial strength, liquidity and the prospects for the development of MGM's CityCenter. This caused MGM's common stock price to be artificially inflated, allowing MGM insiders to sell close to $90 million worth of MGM stock at higher prices than they would otherwise have obtained.

As the true facts about MGM's deteriorating financial condition and the Company's inability to fund the CityCenter project leaked into the market, the inflation in the price of MGM stock was removed, causing plaintiff and the members of the Class damages.

On November 4, 2009, Judge Robert C. Jones signed the Order consolidating the two related actions under In re MGM Mirage Securities Litigation, 2:09-cv-01558-RCJ-LRL.

On October 25, 2010, Judge Gloria M. Navarro granted the motion to appoint lead plaintiff, and denied the motions to consolidate other actions. Public Pension Funds’ (composed of Arkansas Teacher Retirement System, the Philadelphia Board of Pensions and Retirement, and the Luzerne County Retirement System) and Stichting Pensioenfonds Metaal en Techniek are appointed co-lead plaintiffs.

On January 14, 2011, the lead plaintiffs filed a Consolidated Amended Class Action Complaint. The defendants responded by filing motions to dismiss on March 15, 2011.

On March 26, 2012, the Court issued an order granting defendants' Motion to Dismiss. Plaintiffs' Consolidated Complaint was dismissed without prejudice. Plaintiffs were given until April 17, 2012 to file an Amended Complaint. On April 17, 2012, Plaintiffs filed their Amended Complaint.

On September 26, 2013, the Court issued an Order denying the Lead Plaintiffs' Motion to Strike and also denying the Defendants' Motion to Dismiss.

On August 28, 2015, the parties entered into a Stipulation of Settlement. The Settlement was preliminarily approved by the Court on September 11. On March 1, 2016, the Court granted final approval of the Settlement and dismissed this case with prejudice.

An objector to the Settlement filed a Notice of Appeal on March 21, 2016. On September 15, 2017, the Court of Appeals affirmed the District Court's decision to approve the Settlement.

Company & Securities Information

Defendant: MGM Mirage

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: MGM
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.

First Identified Complaint

Robert Lowinger, et al. v. MGM Mirage, et al.

COURT: D. Nevada
DOCKET #: 09-CV-01558
JUDGE: Hon. Brian E. Sandoval
DATE FILED: 08/19/2009
CLASS PERIOD START: 08/02/2007
CLASS PERIOD END: 03/05/2009
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abraham, Fruchter & Twersky (New York, One Pennsylvania Plaza)
  2. Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
  3. Goodman Law Group
First Identified Complaint (FIC) Filings:
No Document Title Filing Date
1 Class Action Complaint For Violations Of Federal Securities Laws 08/19/2009
2 Order Consolidating Actions 11/04/2009
3 Order 10/25/2010

Reference Complaint

In Re: MGM Mirage Securities Litigation

COURT: D. Nevada
DOCKET #: 09-CV-01558
JUDGE: Hon. Brian E. Sandoval
DATE FILED: 01/14/2011
CLASS PERIOD START: 08/02/2007
CLASS PERIOD END: 03/05/2009
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barroway Topaz Kessler Meltzer & Check, LLP (San Francisco)
  2. Nix Patterson & Roach, LLP
Reference Complaint (REF) Filings:
No Document Title Filing Date
1 Consolidated Complaint for Violation of Federal Securities Laws 01/14/2011
2 Order 03/26/2012
3 First Amended Complaint for Violations of the Federal Securities Laws 04/17/2012
4 Order 09/26/2013
5 U.S. District Court Civil Docket 03/26/2014
6 Stipulation and Agreement of Settlement 08/28/2015
7 Notice Of Pendency Of Class Action And Proposed Settlement, Motion For Attorneys’ Fees And Settlement Fairness Hearing 08/28/2015
8 Order Preliminarily Approving Settlement and Providing for Notice 09/11/2015
9 [Proposed] Final Judgment and Order of Dismissal with Prejudice 03/01/2016
10 [Proposed] Order Approving Plan of Allocation of Settlement Proceeds 03/01/2016
11 [Proposed] Order Awarding Attorneys' Fees and Expenses and Lead Plaintiffs' Expenses Pursuant to 15 U.S.C. Section 78u-4(a)(4) 03/01/2016
12 Objector Nickolas A. Kacprowski's Notice of Appeal 03/25/2016
13 U.S. District Court Civil Docket 09/15/2017
14 Memorandum 09/15/2017
15 Mandate 10/11/2017
16 Order on Mandate 10/16/2017

Related District Court Filings

No Document Title Filing Date
1 Civil Cover Sheet 10/15/2009
 
 

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