HARTFORD, Conn., Nov. 23, 2005 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Western District of Wisconsin on behalf of all persons who acquired the publicly traded securities of Great Wolf Resorts, Inc. (NYSE:WOLF) ("Great Wolf" or the "Company") between December 14, 2004 and July 28, 2005, inclusive (the "Class Period"). Also included are all those who purchased the common stock of Great Wolf pursuant and/or traceable to the Company's Initial Public Offering ("IPO") on or about December 14, 2004.
The Complaint alleges defendants violated federal securities laws by issuing a series of materially false statements in connection with the Company's 2004 IPO. According to the complaint, the Company provided misleading, unreliable and unpredictable quarterly and annualized guidance based on its preferred non-GAAP EBITDA measure. Since defendants' EBITDA number was allegedly unreliable, both the Company's business prospects and the value of the underlying business was in doubt to the extent this defective measure was used for valuation purposes to convince investors to buy the Company's stock during the IPO.
On July 28, 2005, investors learned the true magnitude of the Company's earnings shortfall and its cause -- the alleged unreliability of defendants' EBITDA projections. Analysts concluded that defendants were fully aware of the true magnitude of the earnings miss when they were out marketing to clients at the end of June, but failed to publicly disclose the materiality of the problem. On this news, the price of the Company's stock plunged $6.12 to $13.65.
If you are a member of the class, you may, no later than January 23, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.